Memorandum Reconciliation Account

What Is a Memorandum Reconciliation Account? The reconciliation of cost and financial accounts can also be presented in the form of an account prepared on a memorandum basis. Such an account is known as a memorandum reconciliation account. The amount of profit as per cost accounts is shown on the credit side of this account. … Read more

Reconciliation of Cost Accounts and Financial Accounts

Introduction Cost accounts are maintained independently of financial accounts because the two accounts have different aims, namely: Financial accounts record expenses in a subjective form according to their nature Cost accounts maintain an objective form according to their purpose The results of these accounts also differ, meaning that contrasting profits and results may arise. Such … Read more