Question

The net profit as per cost accounts is ₹2,00,000, but financial accounts show ₹1,80,000. Upon examination, over-absorption of overheads by ₹20,000 is identified. Which reconciliation adjustment is correct?

A Add ₹20,000 to cost profit
B Subtract ₹20,000 from cost profit
C Add ₹20,000 to financial profit
D No adjustment required
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