Integral System Accounting

When we keep our financial and cost accounts separately, we have to reconcile the both accounts. For saving reconciliation time, we have to keep integral accounts which fulfill the need of financial accounting and cost accounting. System of keeping accounts this way is called integral system of accounting. All transactions which are relating to cost accounting and financial accounting are self balanced through integral account.

Advantages of Integral System Accounting 

1. There is no need of making reconciliation statement for matching the profits as per financial accounting and  as per cost accounting.

2. There is no need of keeping duplicate records.

3. Both cost and finance department can work together for promotion of business under this system of accounting.

Essential Features of Integral System Accounting 

1. We record the transactions relating to warehouse in store control account. This account will be debited with the purchase of raw material and credited with payment of cash or creditor account.

2. We also open wage control account which is debited with wage control account and and credited with the cash or bank account when we pay the wages.

3. We also open the production overhead control account in which we keep the accounts of indirect material, indirect labour cost and other production overheads.

4. We also open the administration overheads control account in which keep the expenses relating to administration.

5. We also open the selling and distribution overhead account in which we keep the expenses relating to selling.

6. Store control account, wages control account and production overhead control account will be transferred to work in process account.

7. Work in process account will be transferred to Finished goods account.

8. The stock which is sold will be transfer to cost of goods sold account. Sales and distribution overhead account also transfer to cost of goods sold account.

9. Cost of goods sold account's debit side, we will show 8 point's account and its credit side, we will show the debtor account. Different of this account will be transfer to  Costing Profit and loss account.

10. Now, in the costing profit and loss account, we compare the balance of cost of sale account and administration overhead control account and difference between this will be transfer to profit and loss account.

Related : Installation of costing system


Comments on this Website
Share above Content to Your Friends


access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Integral System Accounting
Integral System Accounting
Accounting Education
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock