Cost Accounting

Non Integrated Accounting System

In cost accounting the cost books are basically maintained under the following two systems:

I. Non-integral or non-integrated cost accounting.

2. Integral or integrated cost accounting.

When cost and financial transactions are maintained apart, the system is said to be non-integral. On the other hand, an accounting system is referred to as integrated or integral when cost and financial transactions are merged. Non-integral accounting systems retain distinct ledgers for cost and financial transactions.

Financial accountants are responsible for modifying financial transactions, whereas cost accountants are in charge of cost accounting transactions. Financial accounting maintains the following ledgers:

  • General ledger: It contains all real. nominal and personal accounts except trade debtors and creditors account.
  • Debtors ledger: It has personal accounts of trade debtors.
  • Creditors ledger: It has personal accounts of trade creditors.

The cost accounting department maintains the following cost ledgers:

1. Stores ledger: This ledger contains all stores accounts.

2. Work-in-progress ledger: All costs of material, wages and overhead for each job or manufacturing in progress are pasted to the respective job accounts in this ledger.

3. Finished goods/stock ledger: This ledger records details of finished goods and jobs.

4. Cost ledger: This is the main ledger and records impersonal accounts. that is. accounts relating to income and expenditure. The following accounts are maintained in the cost ledger.

Show More

Leave a Reply

Related Articles

Back to top button