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Bcom 2nd year Integrated Accounts notes

Bcom 2nd year cost contral and Integrated Accounts notes

Meaning of Integrated Accounts

Such a system of integrated accounting in which financial accounts and cost accounts are at the same time ..

Accounts are kept in books. Unified accounts are called. Under this system, accounts are kept in such a way that the detailed cost of goods produced can also be known. Also, detailed information is received regarding cash debtors’ expenses etc.

According to the Institute of Cost and Management Accountants, England, “Integrated accounting is a method of ensuring that all related expenses are included in cost accounts.

Bcom 2nd year cost contral and Integrated Accounts notes

Financial and cost accounts are interlinked. “

Thus it can be said that the integrated accounting method refers to the accounting method in which financial and cost transactions are accounted for in a single ledger, which is called an integrated ledger, and by them, every item, subtitle, process Cost. After analyzing the profit and loss account and the economic letter is prepared to know the collective status of the business.

Accounts and accounts of integrated accounting system:

(Ledger and Accounts in Integral Accounting System)

(1) Overheads Control Account

Separate control accounts can also be opened for factory, office and administration, sales and distribution overheads or an overhead control account can also be opened for everyone. The current work account is debited from the factory overhead and this account is credited. The profit and loss account is debited from the administration overhead and this account is credited. The cost of sales from sales and distribution overhead is debited to the account and credited to this account.

(2) Cost of Sales Control Account –

The cost of goods sold is debited to this account and credit to the manufactured goods control account 

It is debited from the initial balance and production expenses and credited to the cost of manufactured goods. The remainder carry over to the following year. This subtask takes the place of the account. .Bcom 2nd year cost contral and Integrated Accounts notes

(3) Wages Control Account –

It is debited from the amount of wages paid and earned and the current work account is credited. For indirect wages, the overhead control account is debited and the wage control account is credited.

(8) General Ledger

Control accounts of all the above mentioned subsidiary books are kept in this ledger, as well as complete financial accounts like cash account, capital account, permanent assets account, etc. are kept. There is no need to open a cost ledger control account and a general ledger adjustment account. Following are the main accounts kept in this ledger: –

(i) Stores Ledger Control A / c)

(ii) Work-in-Progress Ledger Control A / c)

(iii) Stock Ledger Control A / c)

(iv) Wages Control A / c)

(v) Separate control account for each overhead

(vi) Debtors Control A / c)

(vii) Creditors Control A / c)

(viii) Share capital account, cash account, bank account, account of each permanent asset, depreciation provision account, discount account (Discount A / c), unpaid expense account, prepaid expense account, profit-loss account, etc. other accounts.

Journalist entries in non-integrated and integrated accounting methods 

Newsletter entries under non-integrated and integrated accounting methods are displayed in the following table.

(Meaning and Definition of Cost Control Accounting)

Cost-control accounting system refers to such a system. In which two groups of accounting books are kept. One group deals with financial accounts and the other group deals with cost accounts.

Small producers do not keep financial and cost accounts separately. They prepare financial accounts as well as cost related articles. For this, detailed accounts of various expenses, labor, material etc. are kept. Such small producers manufacture one or two items, working in this method saves time, labor and expenses. But large producers have to keep both types of accounts separately.

B. K. According to Bhar, “Under un-integrated accounting system, separate books are kept for cost and financial accounts. The Cost Accountant is responsible for recording the cost practices. While the financial accountant is in charge of financial records. ”Bcom 2nd year cost contral and Integrated Accounts notes

Cost-control accounting

1) Cost Of Salcs Account

This account is debited at the cost of goods manufactured and sold, and the sales and distribution expenses are also debited to this account. The total sales amount is credited. The profit of the sale is debited to this account and the cost benefit is transferred. Bcom 2nd year cost contral and Integrated Accounts notes

(2) Costing Profit and LOSS Account

This account is credited with the amount of daily profit, abnormal profit (Abnormal nine high growth credited to this account and debit to this account for abnormal losses such as abnormal decay head salary etc.) Overhead adjustment account balance or overhead. Office The balances of overhead and sales and distribution overhead accounts are also transferred. Finally, the net profit or net loss cost is transferred to the ledger control.


  1. Importance and Elements of Cost
  2. Materials
  3. Labour
  4. Overheads
  5. Contract and Job Costing
  6. Process Costing
  7. Operating Cost
  8. Reconciliation of Cost and Financial Accounts
  9. Unit of Output costing
  10. Tender price
  11. Machine Hour Rate
  12. Cost Contral Account and Integrate Accounts

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