Cost Center Reporting/Segment Reporting

It means recording additional details while passing expense entries like Department and Location

It is normally done for Expense Entries like

Expense Dr

     To Party

and

Expense Dr

    To Bank

However,it is not done in entries like

Expense Dr

         To Bank

as there is no expense account

Example

Suppose we have received Telephone Bill for Noida Office of Rs 2500 from Airtel.Amount paid by cheque

We normally pass the entries

Telephone Exp Dr

    To Airtel

Airtel Dr

   To Bank

In this case,Cost Center is Noida which we can put only in first entry and not second like following

Telephone Exp Dr        2500

           Noida    2000 -------------------->This is a cost center

                       To Airtel             2500

Airtel Dr                    2500

   To Bank                            2500

However,if we do directly

Telephone Exp

             To Bank

We can put cost center as follows

Telephone Exp Dr        2500

            Noida    2000- ------------------->This is a cost center

                       To Bank            2500

 COST CENTER REPORTING ASSIGNMENT

1. Office files purchased for Mr Rajeev from Accounts Dept in Delhi Rs 1000 from Pooja Stationary Store by using office petty cash

2. Monthly wages paid to office sweeper for Noida Office Rs 400 by cash by Admin executive Priyanka and then claimed from company

3. Free lunch for emloyees on Christmas eve at Sagar Ratna arranged by Miss Sunita of Hr dept,Delhi ,Bill recd from Sagar ratna of Rs 8000

4. Conference Fees Invoice at Galaxy Hotel,Delhi Rs 14000 in which sales meeting of Noida emloyees was held

5. Printing bill from Vishal Printers for Calender distributed to clients by Sales Employees of Delhi Rs 20000

6. Rent for Noida Office Rs 20000 paid to Ansal Builders by cheque

7.Salary paid to different employees by cash as follows