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For showing the revenue and financial performance of company , Accountant maintains a company accounts .All company accounts are made in Corporate accounting . We can define it as recording of issue of equity and pref. shares , debentures and rewards.
t is also duty to maintain all routine accounts like sole trade and partnership firm . In normal transactions , we can include purchase , sale , receipt and payement.
but the manufacturing accounts Manufacturing Account is prepared by the business enterprises that are engaged in manufacturing activities. In order to ascertain the cost of goods manufactured, the Manufacturing Account is prepared. In this account, both direct and indirect expenses relating to the process of manufacturing are recorded
Should clarify the question moreWhat is the difference between the accounts of businessesThe accounts factoriesThe answer is that the difference is clear from entitledThe company usually commercial trade in goods for resale , whether these goods are purchased from the local market or importHere we find that the stock is one type , a stock of goods for resaleThe accounts of the factories we find that the big difference is also clearThere are two types of inventory the first work-in-process inventory and second finished goods inventory,And there is an intermediate accounts closed the account costs , which in turn are divided into direct costs , which should be followed and affixed to the product and indirect costs and are charged to cost of product by Cost driverThen close the accounts of any intermediary in inventory cost of finished goods and thus
In the company accounts, Trading Accounts, P & L accounts and Balance Sheet is reported whereas in the Manufacturing accounts, apart from the above financial reports, Manufacturing account is also required to be prepared which gives the information on the cost of the goods manufactured.
In the company accounts, more emphasize is given to control the direct expenses where as in in Manufacturing account, direct expenses plays an important role to ascertain the profitablitiy of the company.
Manufacturing accounts, gives the details of the consumption of the raw material, production wastage, production capacity of the unit, profitablity of the unit which is not there merely in the company's account.
