There are certain items which are included in financial account of manufacturing concern but shell not be included in cost account since they are not related to cost of production these items fall into three categories profit finance and financial income sinking fund dividend paid taxes on income and profit transfer to general service excess provision for depreciation of building plan etc and also for badam among return of good will preliminary expenses underwriting commission discount on debentures issued expense of capital issue etc capital expenditures with specification matters of pure finance losses on sale of investment building etcences on transfer of companies of the interest on bank loan debentures moretages the major payable penalties and finds loss due to scrapping of machinery remuneration paid to the property in excess of Bank deposit profit made on a sale of invest fixed asset etc transfer fees receipt receivable interest dividend etc losses for games on sale of fixed asset loss of business property on account of text fire or other natural calamities in addition to above abnormal items gains and losses may also be exploded from cost account alternatively these may be taken to costing profit and loss account in this system in integral accounting cost and financial account or kept in the same set of books it provide fully the information requirement for costing as well as for financial account under the system there is no need for a separate coastal ledger advantages of reconciliation costing profit and financial profit does not arise as there is one figure of profit only due to use of one set of books there is significant agent of saving in effort made no delay in caused in obtaining information as it is provided from books of original entry with the second also set is based on the concept of centralisation of accounting function decide the extent of integration of 2 set of books whether to integrated up to the stage of primary cost of factories cost or paper full integration of the entire accounting record suitable coding system must be made available so as to serve the accounting process of financial and cost account standardisation agreed routine with regard to the treatment of provision of accural prepaid expense and adjustment necessary for preparation of interim account perfect coordination should exist between the staff responsible for the financial and cost aspect of the account and efficient processing of accounting document should be ensured Stock add purchase add incidental charges less with closing stock we will get direct material Then direct labour direct expenses Prime cost production overhead opening work in process closing work in process factory cost and work administrative overhead cost of goods manufactured and finished good selling and the distribution.