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CMA Intermediate · Cost Accounting · Cost Book-Keeping

In a non-integrated cost accounting system, which ledger contains the Costing Profit and Loss Account and the Cost Ledger Control Account, the latter acting as the record of the balancing figure for the cost ledger?

The Cost Ledger holds the Cost Ledger Control Account and the Costing Profit and Loss Account in a non-integrated system. It is self-balancing because the control account captures the financial-side entries, so the financial General Ledger does not contain these accounts.

  1. AGeneral Ledger
  2. BCost LedgerCorrect
  3. CStores Ledger
  4. DWork-in-Progress Ledger

Explanation

In a non-integrated system the cost ledger is maintained separately from the financial books. The Cost Ledger Control Account (also called the General Ledger Adjustment Account) is kept in the cost ledger and holds the financial-side double entry, so the cost ledger is self-balancing. The financial General Ledger does not carry these cost accounts.

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