Prepare a Reconciliation Statement and find profit as per financial records for the year ended March 31, 2025.
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To remember which adjustments to make in your reconciliations, think of this rule of thumb:
• Add back to Costing Profit: Any item that made the Costing Profit lower than the Financial Profit (such as over-recovered overheads in costing, or non-operating income recorded only in financial accounts).
• Subtract from Costing Profit: Any item that made the Costing Profit higher than the Financial Profit (such as under-recovered overheads in costing, or purely financial expenses recorded only in financial accounts).
