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Sir, I will give you a reference of a page please help me with that.
(Page 225, BPP book MA2)
There is a chart made for marginal costing.
It is showing Contribution c/d and contribution b/d.
How can contribution is carried and brought down?Sorry, I seem to have a different edition. I’ve looked at all the charts printed in my book and can see no reference to Contribution c/d and contribution b/d. I would not expect these term to be related to a chart (graph). They sound more like a T account.
Yes sir, you are right. In that chart, a diagram is made of cost bookkeeping system as per marginal costing. A part of chart shows a t-account of Statement of Profit and Loss which has Contribution b/d and contribution c/d.
The balance is just the difference between Sales and Marginal cost of sales, so represents the contribution.
Sales exceed CoS so the balance is carried down from the Dr side to the Cr side and represents the contribution.
The C/D, B/D mechanism is identical to other accounts. So, if there is a rent account where amounts are debited into, the balance is carried down from the Cr side to teh Dr side and represents the expense to date.
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