0% found this document useful (0 votes)
233 views24 pagesDepartmental Accounts
Uploaded by
m.kumar941164Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
0% found this document useful (0 votes)
233 views24 pagesDepartmental Accounts
Uploaded by
m.kumar941164Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
faunia wart
(Departmental Accounts)
Feet oe apg Se HES Ga GB eo Rat aA fer Bae ee
3s rT es gua wey ar ey 8 sre} eaary § orate cient fat at ave fr fr
B Behe, Yeah, am ga Pe OU eee Fed yas all a at met we 3 eas
" Fee EMER we ate Fe yey fn weed teh Bee es Se ae #
WER (Dep SITS, Fasc, fare fees aed ane Be fer yoraryeas fas Ht waa 1 Ta earl St
arene ee Sa Te ge Be ee PE eC ar gh oh Hon 1 ede Haast a ae
wre Faster swan ah ee a a BR hear reat wore ae orale ae A at wae wh Ea
{Sy Re Se BF Fe ee seme 2 HR te
a8 Rani ata orate: Berit H wet fen uri
feet seem ors Surwer es CA HY Red eign Ramee ee a
area wget Saaarr & et SET a fh Prefeor Par oar 21
faanita wi aft dard at sever (Need for Preparing Departmental Accounts)
‘ferarita adi & or (Advantages of Departmental Accounts)
fs eg ere Fetes @ =
ay ‘feat 1 ME FA (Clear knowledge of departmental position)— wate Fram
atare eh B eeeere-tanh BY ove Het Pt ara fete at aM a Here aT ay NT
fareare a8 ator war eT 8 ae sea are Fat wy sraaa at at B saa a wea eT
(2) ferorete: e BeT TT A BUA (Determining departmental and total profits) Fruita wnat ent see
fan ag serene BRET eel eta et a ate fe orn 1 FON Reape meee ea
fan ero eer a wa ¥ A onfies sacar ard €1 gee Renta omit ame Sra Se
ge oy it ast eI
3) ferwrtte eerdamrat % af (Increase in departmental efficiency)~ Famrita wordt & wes fast
2a ee aera free | 8 BUTE S a eT ae FW GH Seed end § eee Ae
fest at reer mort we Pte ea 8 eT Ter fer Feet Bt TNE aA TT ST Ta 8 Se ag wh SEAS
eth fy rer wr 8 FOR es oe Fs reer ae a 8a gd ae meee
ant 8 oft gfe eet tt
caranftes “fer rafter 3 were (Helpful in the formulation of trade policy)~ Famnita wit ora
axed Set ata AR et 9 Ha eae eH EI en IM A we we Ha SETS ee
Recreate Foe! Feet ES
faurita ofeorit ‘EIS (Helpful in ‘the comparison of departmental results) feunit
ec oO em ee Se ea 6 wet GOAT gH HOTTA ne reek oat Sa
ware
serait St & ure 8 wares (Helpful in m a 2
me of fea =a sige s Toke Ranh msn te tiney departmental
@ scanned with OKEN Scanner Prter Sen faty
6A2
were BAD ee re) serra wept a tte weet ot ae sobuithit A siftpton & Fee onsen Boer af amy
went:
ait frert ® S27 (Ditterence between Branch and Department)
rel ever ed Prd eer Bee: sel fe ek ene Pen we ee 8 a
hh gee re weer Es wert oe Perio Per reread gare ae eer eR Go ae
ae Sr ee eee erg Pi eo rl ee fe AY ee wire & Be
gem ges ahah re Ga fw een 1 fifo Rite Pieter at rrrarn & Pash ath et AA ape fers et
= O8 wan @ eae eafeet Baha yan aan Paterna t—
Leet hae). sh coats ten 8 twee Bawa BA fines Ba ae Pen eet he a
3 ps8 cw & Fe 8 fats eet Bren fitften et fle 8 he Tra aH
2. SAR (Product aN rans WG Gi waN ] aeae Fa ara & aalie Paftea Pret werent sae R gee
Rawes 7
3 ‘SrCIsT (Head Office)- eras a1 yea arate ge Pas aT GAR wet Hf fees tear 2 aah Geet =
Be aces me sh was 8 tai |
3. SRR (Objects) Frere areal arity ugar athe fast age & fed ate oat 3 wae fines eres & ae
arene mee ane 7 7
5. BRET (Accounting) aH fruril & 3 we Ga wa a ewes wate Mee aS ae Ten
0S a 8 cols ge ain A ht rae & Fa Te
6. Bet we fase (indigenous and Foreign)- ward @vt wi fatet drt wan at @ wedi 2 wate Fes abe
ahd tet:
frente aa aor en Saws
(Technique of Preparing Departmental Accounts)
faerie ora sort & seria wate fear ar oneets yoa-qea frulfta feat ora 81 gee FS Raa Se
ed areas ara (Trading and Profit and Loss Account) fawnita sium & dan fea orn ¢ act ae en Se
‘SHER FY (Columnar form) 4 tan feet ora 81H GTd A wea far at Ufa & Kee Bikes & fk SS
faerie onam a arena aren dan a & Tear GH ATT eM-TIAA Gra (General Profit and Loss Account)
St Gan fae aren 1 ge ara wears Fa YX AM A YS WAH sia B MATE HM ae ae a Uh we At
‘sal Forres fearitg saree we af ear Tere eH 1 Uf was Rees A GAT AUT A ATG Bt ERIM APL REET
ares at a at Farm ot ret ees SAAT fe GE TAL TIA (Stock Reserve) HATS wt gal
34 fac sare 81 ay ear aid Sh elt raTC HQUE TEIATE A YR. SINE MI YR I wa wer FS
# at Fear caren 1 el ae eae eect afr A MFT AteUEAT HY snes Fast Ge artery & KA GS
8G tear Fagan 2 fe ea ane confit earfce eten FaTT & FeAAL aH SHER fea ga a ah FRE 2 aK
i ara H Feria zee a age are aE Ht eau Uf
evar cara ar act fer’ cefere, 04, fa
MRE
iu
Lael, wong se ert Feereor Ramp sweIaR AA wR wR
Fawr are arcana 1 gaa fer oo ae, Foon ail, on caval) al Side Fes aA) aa I Syed & wara art &
act Fer fea was rere art eA aL Tre Ferrer TL FAL SL ALA
wea wah he Peon ah a ma eT
Departmental Purchase Book
Invoice No,
@ scanned with OKEN Scanner Faerie ara 6A3
Departmental Sales Book
Outwar
ous | raneuirs | Se _|
fe femnit ot sag feat ite wag are oT ait dee
Jaret ate afer fara rrr eae ge ee HOGG a eH a
‘safe Ferg art eae ay ew Far et fT
Heer are ere a ee ay ee we er
Sa 1
fearia erate qi areata aE
(Specimen of Departmental Trading And Profit & Loss Account)
Departmental Trading and Profit & Loss Account for the period...
Particulars Deptt | Dept | Deptt | Total ] Particulars Dept | Bept | Deptt. | Total
x |v | 2 x | y | z
Rs. | As. | Aa | As Ra | As. | As. | AS.
To Opening Stock . By Sales Less returns | \>
To Purchases less / By lnter-Departmental
returns Nxd xX | xx Sale
To Inter-Departmental , By Closing Stock
Purchases “
To Wages x
To Manuf. Expenses | . \ | +
‘To Gross Profit o/d
By Gross Profit b/d
janes
To sat By Sundry Incomes
To Not Profit
(Tr. to Gen. P. & L. Ale)
General Profit & Loss Account
ones = Taicure om
Ea
By Nat Foie Tom =
iy Exparses
Te Se ocatod among departments) oer
Puce on ciosing sock :
Te ea Net Prof (Transeredt B/S) Dept 2
By Stock Reserve on opening stock
ee ated oath neat
apts ‘Accounting-Allocation of Expenses)
(Dithealties ope et es Fo tT, eave a Te ss Fege e
aan ne a sk rg ve aT He Saat aT at 8 ge eee a AAT Fle ER a Fae SIT
e
@ scanned with OKEN Scanner 6aa Peer en- Pa
rere Pare ds pane rere i Pot mre cPiepentes for the ¢ f @ paicticular departen
na Sena Tape a Pos fa oh Pte ae Orem Prior ft aed Peon wee» arn
fordhe ware} Of rere a) ame Fern 2 ed ices cate fire Bese rity A pee erect ose sett Feat ore &
(2) B afer Frere rere He Fir mem fleswt weft tere Pema eR B (Fxperses for the ben
gre thas nt deerent tut enue of preci san) ser fir of Pr fers
ah Ba feat ath re (ocersity and Power) & mit a Patties Pret ath he cate aes parpit &
lsqqee 2 tz cam by
(2) B seems Pret Be ee Be feed re Peat ht Meme ter 3-H (Lexpenies for the ence of more
than one department not capable of precise allocation)~ 28 writ ait & fest aes wer # anf snare arena wat
Bw Se srzera Fee Bah van deme ayes fis ae re es Ht eae Pet eve Feber & gem A oe oot
a) fash segs aouR w fats freret B fiwnfieg eat fh? |
ee ee ge segs aren Pretiad @ wad ; ;
8) Feedt SLANT (Sales or Turnover Basis Rath & avatar eto Pattea Prerait 4 Past
wire tS exe Frofefes Bed t: (i) Bap (Discount Allowed), (ii) 34 7" (Bad De!
Ss:275 (Selling Commission), (1v) 31 GENE (Carriage Outwards), (v) WAT 34 (Travelling Ex
Fada mi S55 (Travellers Salary), (vii) Fram qa svat % ea (Supervision and Establishment Expenses
fees SE (Advertisement Expenses), (ix) 72TH #1 TET (Godown Rent) |
4) BEE EE wT STEN (On the basis of floor arca occupied)~ FB WAN & awa wits Eras oo eee
we ses & Seen & sven wf ot wea B18 oa Prefer Bh aaa (i) Na Pet (Rent of Bus
verte sx Sk &% (Local Taxes and Rates), (iii) 484 # 4A (Insurance of Building), (r)
(Repairs to and Depreciation of Buildings), (v) Ja % 274 (White Washing Expenses); (vi) #50 % art (Sweeong
Expenses), (vii) feast stk ay (Lighting and Heating), (viii) wieten 1 aA (Salary of Watchman) |
@ ses Gorcnase Basis) arafte Geng (Carriage Inwards) at WA #2 (Discount Recesved!
2S faerie we & aqua 8 tea aa
(sie Sao sree GUE BT ATA (On the basis of number of workers or wages)~ 77 Sa HAT SS
ae Feet tem were oe Be) RT area URE Sore Ba ater a a hoe & ses Pek we Se
sofa et Sh ae, fren Harel a eon, are sae aA a fen aaa A ferme fem ae SITES |
(%) fe% aye St BIT ST STEAK (On the basis of cost of goods sold) @M-wM we 8 fates sxe Sat
festa face ore ah cara & saree oe atest ar Free feed Tren bet Rear eet ew Fawr at Rat st
seen wet anf i fx fatten oxet age cr Be area A Fan arc ea | eines cafe atk wet Se
aia woe a ofa wren fat Bara ere a TT
(@ ea wa (Other Expenses) :
@ pe ree) ee ee
aydt & tga, 74 1a Wes (Horse Power) TM Te Yat (Running Hours) S west } eqs F
fasta aoc ante’ 1
Gi) Sta Sifeza (insurance Premiums)- eé fatwa fruit 1 afte Rereerey & yer H sea Ke wear aves 1
Se rer are oe fire air ten fearon & athe ceferar aT sab efter & aeqeTA A Ronfera Pear or wT
1
(ii) Heer Bt areas athe BTA (Mepreciation and Repairs on Plant) Fe Fabia wed F eet weit F ye F
saan Favre fea, ar eat 1
(iv) arene merges er ert (Works Manager's Salary)~ 4 HHH ERT WG eT | fed KA we wee}
Seam Po BL ST OST me Pee ee oa 8 eI
waa et
‘emelt fier arrere we fereforer Fett or WR ATE BE (Lexpenses not allocable equitably) AR Her HENS
eran 5 re, ena a HM, MEAT AC ATA, Te, TaN aT HEMT, TET AY PSHE Ua SATE KAI
Ste stray, eit kerry, exer ec 4 eet ih Peafira Reem aT Reet) PAPA TOAD Reet HEL SST
erm fas ee tan a ery ae HEN AGHA TAHT flee ewe eT eA ree Ae Rete, ea, A TT STINET
3h ee cre Haier a Go aie 1 a er sree ah Re eT HE an AE wT FE eT aT BT
ethene areca, @ eh a wa BH otra Hf avatar ae UPL
(4)
4
#.
eae
@ scanned with OKEN Scanner feria wit
x awn et at AL an, 1998 ay airer ot met ak as fe ere armies ara F
- The Ted and Profit & Loss A/c of Radio and Gramophone Company for the
1998, is presented to you in the following form=
‘Trading And Profit & Loss Account
year ended
Purchase : . Sales :
Radios (A) 140,700 adios (A) 150000
‘Gramophones (8) ‘90,600 Gramophones (2) 190.000
‘Spare Parts for Servicing (C) 64,400 Receipts from Servicing
Salaries and Wages 48,000 and Repairs Jobs (C) Boo
Rent 10,800 Stock on 3tst March, 1998
Sundry Expenses 11,000 Radios (A) ee
Profit 345500 Gramophones (@) 20.300
Spare Parts for Servicing (C) 44.600
06.000
retain eet Bh ear A rah fern ym ae waa Fl & fe frites Ta eae
6) Ga ar Ure eH Se DT a Td Tee Gworahop) FF
GA) eee mag fret ee @ eho 3; anderen E
aire re gh fn 5 ae 1:2 Be eg Rt a Pree tb
(Gli) eben ar eran 500 Go fer eas a Fer Fre ae tH er BH SHOTS HRI S wait aa
arr
ov) Fat xe es a ae Fin Ft
Prepare Departmental Accounts for each of the three Departments A, B and C mentioned above after taking
jinto consideration the following information :~
“(@ Radios and Gramophones are soldat the showroom, Servicing and repairsare carredout atthe Workshop.
(Gi) Salaries and Wages comprise as follows—
Showroom 3; Workshop 5 -
It was decided to allocate the Showroom Salaries and Wages in the ratio of 1: 2 between the Departments
Aand B.
(jy The Workshop cent iss, 500 per month, The ent of theShowroom ito be divided between Departments
‘Aand B in space ratio, ie, 2 and 5.
(oy Sundry Expenses are to be allocated on he bass of the turnover of each Department,
Departmental Trading and Profit & Loss Account
Solution :
for the year ended 31st March, 1998
See eee
|
a 6 Cc x <
Rs, Rs, Fs. ay c
To Purchases 740,700 | 90,600] 64,400 | By Sales T0600 a6
ToErtes Profiteid | 69,400 | 29,700 | _6,200 | By Stock Spat 35000
210,100 | 1,20,300 | 69,600 Sib IDD s4s00
ties & Wages {~ 12000 | 24,000] 12,000 ] By Gross Profithid [69,400
Tobe ‘3,200 | 1,600 | 6,000 | By Net Loss a em
To Sundry Expenses | 6,000] 4,000} 1,000
To Net Profit 48,200 ‘100 |__-
9,400 | 26,700 | 70,000, samosas
»
@ scanned with OKEN Scanner facta rer-faRy
‘SAO 2. ew BEBE 8 are 6 tre 3 Rae x athe Y a eat % ses Ya CT aT
sen ew Ee RN ener ses 1a Ge en ee mH
ar een ra Pr oa srr 40 wf ate 30 rer apr 6 fr #1 baa Soa lebaied
aah agen ST aot Rao A were a2 at) ort at Fa & sega H a2 ae #1 30.54
ret ra fore geet Fein Fer arr:
6A6
xo Yo
rafter 1 a8, 1998 30,000 a
* 1,40,000 1,20,000
Loa 50,000 72,000
ee 18,300 28,400
afl 6 Past & army or 36,000 vo & 1 i frit at Flt 1 40,000 #e 1 30 9% 1998 BY Ga eT ate
safe & fer aren aaa we AEE GET TART | 30 FF, 1998 & veteran & rte ea oe Hee fers & fer 7%
Th busnesan wishes to ascertain the separate net profits of two departments, X and Y for the six months
ended 30th June, 1998. Itis nor practicable to take stock on that date. However, the ratio of gross profit (calculated
without reference to direct expenses) are determined at 40% and 30% on sales at the two departments respectively.
There are in all six departments. Indirect expenses are to be charged in proportion to departmental sales except
as to one-third, which is to be divided equally. The following figures are extracted from the books for the period
‘ending 30th June, 1998 :
x ba
Rs. Rs.
Stock on 1-1-1998 30,000 28,000
Sales 1,40,000 120,000,
Purchases ‘90,000 "72,000
Direct Expenses 18,300 28,400
Indirect expenses of all six departments were Rs. 36,000. The sales of other departments were Rs. 1,40,000.
‘You are required to prepare a columnar trading and profit and loss account for the period ending 30th June, 1998
‘making a stock reserve for each department at 7% on estimated value of stock at 30th June, 1998. (Garhwal 1998)
Solution :
Departmental Trading and Profit & Loss Account
for the period ending on 30th June, 1998
Particulars x 7 Particulars x Y
[aa en Be
To Opening Stock » By Sales 1,40,000. 1,20,000
To Purchases By Closing Stock 36,000 | 16,000
To Gross Profit o/d (balancing figure) -
‘A-40% of 1,40,000:
B-30% of 1,20,000
= 1,76,000 1,36,000_
qo ht Baca ay Gt ponent
Te eet Se Beate e000] — same
To Stock Reserve x
To Net Profit
Tadirect Expenses have been divided
‘Total indirect expenses = Rs. 36,000
1/3rd to be charged equally, iz., for each department, the amount =
Remaining 2/3d, i, Rs. 24,000 to be charged in the rato of sates,
‘Thus, for Department x, the amount is $5000 x 24,000 = Rs. 8,400
@ scanned with OKEN Scanner Pasnita erat 6A7
f 1,20,000 = Rs. 7,200
for Department ¥, the amount is #254 yy % 24,000 = RS. 7,
‘Total for Dept. X = 2,000 + 8,400 = Rs. 10,400
“Total for Dept. ¥ = 2,000 + 7,200 = Rs. 9,200
SeIBe 3. wes ares ater rey, fers 3 fer er ae ft a2 —
‘Pie following purchases were made by a business house having three departments:
Department A 1,000 units
Department B 2,000 units at a total cost of Rs. 1,00,000
Department C 2,400 units ‘Ber 1,00,000 Fo
Opening stocks were : Wrefias weferar $e aT m=
Deptt. A 120 units ; Deptt. B 80 units and Deptt. C 152 units.
‘The sales were : faspa Fr sam
Deptt. A 1,020 units @ Rs. 20 each
Deptt. B 1,920 units @ Rs. 22.50 each
Deptt. C 2,496 units @ Rs. 25 each
‘The rate of gross profit is the same in each case. Prepare departmental trading accounts.
Reser oT a feral Mees FET 3; Fee RT er Rerurte eeenfies ware aga
Solution : Departmental Trading Accounts for the year ending
x 5 c a e c
7 Rs, Rs. Rs, Ps. Ps. Ps.
To Opening Stock 1,920} 1,440] 3,040 | By Sales 20,400 | 43,200} 62,400
To Purchases 16,000 | 36,000 | 48,000 | By Closing Stock 1600} 2880] 1,120
To Gross Profit 4,080 | 640 | 12,480
[22,000 |" 46,080 | 63,520 22,000 | 46,080 | 63,520
Working Notes :
(1) Selling Price of articles purchased
Deptt. A 1,000x20 = 20,000
B 2,000 x 225
C 2,400 x 25
Total Selling Price
Less Total Cost,
‘Total Profit
Gross Profit
(2) Overall G. P. Rate = SESS POM, 199 =
(3) Calculation of cost of each article :
Selling Price — Profit (20% onS.P). = Cost
25,000 7
Deptt. A 20» — 4 =-16
Deptt. B 2250 — 4.50 18
Deptt. C 25 - 5 20
‘Thus, cost of purchase in the three departments is as follows :
Department A : 1,000 x Rs. 16 = Rs. 16,000
Department B : 2,000 x Rs. 18 = Rs. 36,000
Department C : 2,400 x Rs. 20 = Rs. 48,000
(4) Calculation of cost price of opening stock in the three departmen
Department A : 120 x Rs. 16 = Rs. 1,920
Department B: 80 x Rs. 18 = Rs. 1,440
Department C: 152 x Rs. 20 = Rs. 3,040
,
@ scanned with OKEN Scanner fart ana
GAS
cpartments :
5) Calculation of value of closing stock in three departmen
“ Department A : (120 + 1,000 - 1,020) = 100 units @ Rs. 7 bee
Department B : ( 80 + 2,000 - 1,920) = 160 units @ a - 8. 2F
C y Rs, . in
Department C : (152 + 2,400 ~ 2,496) = 56 units | fa eae
EL 4. es EEA Uy Faint A, B,C, D at E gre aaear vere ach #1 31 Fee, Fee
; we a E, The item of trial balance as
ae impany carries on its business through five departments : A, B,C, D and E, The it
on 31st December, 1998 were as follows :
D E
A 8 c 7
Re =
Rs. Pe. Ps.
Opening Stork sen apo sen one
beet fo 0) bsm0 «23.000 «50000
Sales 48000 21.000 ; ; 30
Closing Stock 6,000 4,000 3,500 5,000 5,500
cis afer waft a pat arma wt fom 7 1 So ;
sect fase eR 3h wh Ret at a ara Pasi ah ae a are ore Prete
‘The opening and closing stocks have been valued at cost.
“The expenses, which are to be charged to each department in proportion to the cost of goods sold in the
respective departments, are as follows :
Salarigs and Commission
Rent and Rates
Miscellaneous Expenses
Insurance
Robilkhand 1995, Meerut, 1981, 84, Agra 1985, Garhwal 1998)
Solution : Statement Showing Departmental Results
for the year ended 31st December, 1998
Particulars a 8 c OT © | toa
: Pe, Pe, Pe. Fs, Fs, Fs,
Opening Stock joo | 342} 2800) 4,000} “a's00 | tS.000
Purchases seco | 20.000 | 10,000 | 28,000 | 34.000 | 10009
Goods Available 58,000 | 33,000 | 72,500 | 30,000 | ag,
Less Closing Stock sare} 4000 | 3.500 | “s.000 | “s'so9 | "02000
Cost of Goods Sold (Proportion of cost | 48,000 | 2,000
pc Se Proportion o 8.000 | "25,000 | 33,000} 7.48000
Salaries & Commission 1962} 1,102] aaa
Rent and Rates 490 230 % ao | ‘et | sata
Miscellaneous Expenses 441 261 at 25 pd Hed
Insurance 196 116 % 100 | 15
7 Total Cost_ 51,989 20,769 9,549 ae
ales
48,000 | 21,000 | _9's00 Bee a Hes
Net Loss (Total Cost ~ Sales) 3,889 7 :
00 131,500
Percentage of Net Loss on Seles ss | 65% | ose oe ore oe
Bia 1 sz te et Rea iG Wd Seiad Ga ey
a RE Xa “ES GHG G dd teica tia &
amy dt gat
i ST Re Fea 8 aes ses wa eh nae
12a on aera aMees aa a oa oF (ar SU 15% TH ret A a afl
3 Fame cea oH U0 dhe oS aT 100 ee Se ay
@ scanned with OKEN Scanner fasirtta zara 6A9
se coats AB war eT rH a aT tw X WR ayy, Y Bt 49 aft 7 3 29 oN ale fen wet 81
31 Fee, 1998 a Ta AY aT en % far, Homratonn wey aL gel fey Faeremy erorar B
gard Be: X 4925 v6, Y 2840 86, 7 1094 40
Ferm’ a fas X 3,120 80, ¥ 214080, ‘son te
RETF oT aed EL aM aed | Terart Prazen au am aif |
Feds re Partners and carty on three retail shops and » small factory. ‘The profit of the factory are
apportioned to three shops on the basis of their turnover
Each shop is personally managed by a partner who is emitied to fet 75% of the profit made by him. The
forthe rears ats fe carried to General Profit and Loss Account. The factory (the Profit of which was Rs. 1,400
{or the year) is managed by Y, who is entitled to salary of ls, 300.4 year chargeable to General Profit and Loss
Account.
¢\fct all adjustments have been made, the balance of the General Profit & Loss Account is divided : X 4/9,
Y 399 and Z 2/9,
For the year ended 31st December, 1998 the following particulars are available Prior to adjustments =
Profit of Shops: XRs.,925, " -YRs.2840, ZRs. 1,924,
‘Turnover of Cigars: XRs.3,120, Rs. 2, ZRs. 590.
Prepare accounts showing allocation of praise partners. Calculations may be made to the nearest rupee.
Solution :
Departmental Trading and Profit & Loss Accounts for the year ended 31st December, 1998
Particulars’ Zs | Total Particulars xs Ys Zs | Total
Shop | Shop ‘shop | Shop | Shop
Z Rs. | Rs. | Rs. Fs. | Fs. | Fs. | As,
To Partners Capital By Shop Profit, | 4,925 | 2,840 | 1,924 | 9.689
Ales (75% Profit By Factory Profit va7 | 'si2 | ‘141 | 1,400
ot the Shop) 3,694 1443] 7,267 |” (12: 214: 59)
To Profit transferred ~ a
toGen.P.&LAc | 1,978 » 622 |"3,822
5.672 2,065 {11,089 5672 | 3352 | 2.065 (17,080
General Profit & Loss Account for the year ended Sist December, 1998
Rs.
To's Salary By Departmental Profit & Loss Alc: Rs,
To Net Profit transferred to Partners’ X's Shop 1,978
Capital Alcs : Rs, Y's Shop 11222
x 1,565~ Z's Shop 622 | 3822 -
1
‘a’ 500 Fo snes ry site Fort a eG 30K a awRT A ak a ts ahaa ye AR
R 10M fee sara ser 35 ar ster 8 OP we # sas “a” tee ae Ae ath af Fan B ead Sahoo ot
FREE
ween & efsit art we 5% feed ae at Fe aren & ey SA Set we aa ae fee aren he aT
at ‘a a, 3 ar at site 2 a at freat 1
fesnit & amear ara vary & arg 31 gerd, 1998 i Bit at dae ah Fafa 2
A, Band C are in partnership in a business with two departments X and Y. Department X is managed by B
and Department Y by C. etsy
B is entitled to a salary of Rs. 500 p.a, and to 30% of the net profits of his department after charging his salary
and interest at 10% p.a. on the average net assets (other than cash) of the department, while C is entitled to a
Similar salary and percentage of the Y department profits.
Interest at 5% p.a. is allowed on the partners’ capital accounts but not charged on drawings.
@ scanned with OKEN Scanner 6A10
‘The balance of profits is divisible as 0 }
“The following is the summarised list of b
of the departments
Capital and drawing accounts
A
8
c
Assets (other than cash) and liabilities :
Deptt. X
Deptt. ¥
Profit for the year to 31st July, 1998 :
Deptt. X (before charging salary)
Deptt. ¥ (before charging salary)
me ea ret st Po Re aa ef 50-30 Bae
to A, 2 to Band ; 10 C.
ces as on 31st July, 1
Dr.
As.
3,000
4,750
1,400
9,380
7,210
4265 ~
arg fart Ht 320 Fo
reer 3s tn ara Fore cre Pe ae |
It was reported that net assets at Deptt. X have increased during the year
‘You are required to prepare a statement showing the division of profit between partners.
Solution +
Profit
Less Partner's Salary
Less interest on average net asset
Gross Assets (other than cash) at the end
jabilities
Net Assets at the end of the year
Less Half of increase in net assets during the year
‘Average Net Assets
Interest at 10% on Average Net Assets
Net Profit after salary and interest
Partner B and C's share in net profits (30%)
Statement Showing B’s and C’s Share in departmental_profits
Departmental Profit & Loss-Account
fated ee Deptt. XT Dept ¥ | Deptt.X | Deptt. ¥
Rs. RS.
To Band C’s Salary 500
To B and C's Share in Profit 570
To Profit transferred to General | 2,120 | 1,765
P&L ale
3190 | 2760
General Profit & Loss Account
To Interest on Capitals :
A 1,000
e 400
c 300 1,700
To Net Profit transferred to
Capital Accounts :
Ao ie of2ies 1,092.50
3/10 of 2,185 655.51 —
C15 of 2185 2
By Profit
By Net Profit :
Dept. x
Dept! ¥
437.00. 2,185
85,
Feira eren-fafyy
aadés
by Rs. 520 and at Deptt. Y by Rs. 320.
98 after closing the profit and loss accounts
cr.
Rs.
20,000
8,000
6,000
1,220
‘950
3,190
2,760
Rs. Rs.
3,190 | 2,760
3.190 2,760
@ scanned with OKEN Scanner peertaant 6AM
srafauniia ReMTTHT (Inter-Departmental Transfers) 5 +
cg fara sare & ew Feo NY Yai are aM egal fhe Teast a seeeeT eT te tae, ATT
fee, Bae Fier eau ay eT Eh tee fn ere pe ge eR MT a Fret ATE
sara A gues 8 Recent | arr Femia geareTe AY wear (Transferec) ™ Her (Receiving) Farrer % ara
card 9 Ske ver A wea a ee Fea sar fa FEAF (Transferor) ™M Hae aT (Sending) FANT % ANAK ART
ahafee 81 sin Brat at aes fewer sear 8 : ee
rere Farr CETTE CIM EH GL (AL Cost Price) dt wera # sama a3 HE HSA W (At Loaded Price) 1 af
eee Te Ue Fe a 4A en een tne a ae hb Fea ere Be PNT
BY are aT aT SH BATT SU aye aT emer eT oe eve arn Sa ahr eae wet ema ae AIA wT A
ita Gea ata er wae eae rey aN were the weal St Pot HY ay a Pare Hes we Peer
sae gt af Seated at ame ge ae Beara rer rarer eh Ge) Fewer 3 eH Ate
ae ort 8 at Hear & er STH | lea A Peake sea eM (unrealised profit) A RE ewes aT SATA STA |
a ea TATE TY (Hee) STN-BIF TH eae cia (Stock Reserve) HAE AM % feral Way (Reserve
for unrealised profit) 3% amt fara smrar & 1 sete cafe we eae Hae oo Sar aT TINT eA Bates Tet
ae aie ceed eae Tae a ST Fe aT Bf var Frey ae #1 darferes eH, ser ote wrens eT
en ie & sree 8 of Sea Far So wea 8 Fy amet Tea ee guage fear sift wel af Fag A wet
2 safer eft at eae aa era aT #1
FET AEA Ne srafdanita RAAT (Inter-Departmental Transfer at Cost Price) —
SUE A, we eh Bo wer wae fan @ 1a 1998 el Fr Fe
jere are three departments in a company A, B and C, the following details are given for the year 1998 :
A B c
Rs, Rs. Rs,
Opening Stock 4,000 2,000 3,000
Purchases 50,000 60,000 40,000
Wages 10,000 ‘5,000 3,000
Direct Expenses 2,000 4,000 ‘500
Sales 60,000 70,000 80,000
Closing Stock 3,000 4,000 2,000
91 eur 3 a Fes 2,000 &o a er a FaMrT BY 1,000 ¥o a Ae Bearer fara 1 a Ferm Yay Fant SH 500
Bo FH Te a FMT Bt 200 Go a HTT Keaatee rear | a PRATT Y 2,000 Fo eT Met a faNTT a Seater Pepe 1
Franti ae oa fea) ar A
Farrar 4,200 &o Gor amr 3S & feo 3} aera fase ere Ba ga ; ‘AT 31,500 Fo; BZ _2,100 Fo;
Faas 4,200 %o; arxitea 501 1,050 ¥o, Ha a1 dr7 20,000 Fo; STAR 10,000 Fo; Tare Bt GE_S,000 Fo; BEET
=I 500 Fo |
arr 4,500 0 (aifaan Tefal & sega *, setae aa Bra 500 ¥o (a FTI ¥ 100 antard, a4 200 astard aur
WH 200 arfard ariza ®; Fase GW Tar 1,000 Fo (Fasita stax fas 31% 500 afte, a 4 300 are ae
a8 200 fie sear at aly, BA Br 600 ¥o aurea Sy
ss fara 3 ftom cea ge festa carafe we Tse ara Aer Oe ATA cE aT ATA |
A Department transferred goods of Rs. 2,000 to B Department and Rs. 1,000 to C Department.
B Department transferred goods of Rs. 500 to A and Rs. 200 to C Department.
C Department transferred goods of Rs. 2,000 to A Department.
‘The following other expenses are given : Rent Rs. 4,200 (A Deptt, occupies } space, B space and C+ space);
Salaries Rs. 31,500; Discounts Rs. 2,100; Advertisement Rs. 4,200; Bad Debts Rs. 1,050; Manager's Salary Rs.
20,000; Income-Tax Rs. 10,000; Director's Fees Rs. 5,000; Legal Expenses Rs, 500.
Insurance Rs. 4,900 (in the ratio of closing stock); Labout Welfare Expenses Rs. 500 (100 workers in A Deptt.,
200 workers in B Deptt. and 200 workers in C Deptt); Lighting and Power Rs. 1,000 (500 units in A Deptt. metre,
300 units in B Deptt. metre and 200 units in C Deptt. metre); General Expenses Rs. 600 (divide equally).
Prepare Departmental Trading and Profit and Loss Account: showing results of each department and a General
Profit and Loss Account.
@ scanned with OKEN Scanner Feria erer-faty
GAZ
Pa csteat 1998
— Departmental Trading and Profit & Loss Account for ene ——
Partoulars x z Pariioulare iz B ie
Fa a 0,000 | 70,000 |~ &0,000
a ry, 000 | o ‘ 709 | 2,000
To Opening Stock} ~1,000 -} 2,000 Gy bales go00 | 709 | 2000
Towagee” 7] §Be00 | eponn 3000. | By Closing Stock 3,000 | 4,
ToDirect Expenses “| 2000 .| 11000 | "S00
To Transfers 2.500 |. 21000 |_ 1,200
TeG.P.cld 800 | 4,700 |~a6,200 aes ee ee
6000] 74,700 | 64,000 M
= =| 4 4,700 [36,300
Fokent@iss) | -f aI60 | 1,080} 7.60 By G. P. bid 15000 12,000 a
To Seines,6:7:8) | 8.000 | 10's00 | 12.000 | BY Net Loos {
FoDiscount (6:7:8) | “goo | ‘%Gq | 12909
To Advertisement 1200 | 1400 | 1,600
(6:7:8)
72 B24 Debts 6:7:8)! 300 | 250 | 400
Fe lnsurance (3:4:2)| 1800 |. 2000 | 4490
ToWettae Expenses | “tog | gq | 1900
(1:2: 2)
Tolighting &Power | 500 | 200 | 209
(5:3:2)
Tenersrayereenses | 200-1 a0 | ag
To Net Profit = = | 18880
18,500 [16700 36,300 18500 _|16700_| 36,300
General Profit & Loss Account
18,850
43/650
To Net Losses :
Deptt. A
Deptt. 8
To Manager's Salary
To income-Tax
To Directors’ Fees
To Legal Expenses
By Net Profit of Deptt, C
—~ 15,000 | By Total Net Loss
Note : Manager's Salary, Income‘Tax 7 a re ticular
; ; wpenses are not related to any Particular
Gepartment. Hance, these expenses shout Rot be divided among the departments;
ea E ‘ 1g ‘tments; they should be
fave x
3i (o) 3 (Bo)
eRe (1 TARA, 1998) 41,000 34 Fo)
Tehera (31 Fema, 1998 " 000 94,000
a B 33.000 44,000 83,000
75,000 1,39,000
5,000 2,000
1,54,000 3,62,000
4,000 12,000
30,000 25,000
fear
ae 18 Feo 5000 so sie Fearn
@ scanned with OKEN Scanner 6A13
frente)
far 45,000 oY AR eg at HE MHREA_ sm Fur ‘oH, “a —2, “A —3, 9A A
retest ve oat hha apres el, asa aft
1 17,190 80 1
FATEH BA 72,000 Fo, SEH WT 18,000 Bo FMT 5,400 Fo af sR 17,190 4 eee
From the undermentioned information, prepare Departmental ‘Trading and Profit & Loss Account in columnar
form of the three departments of M/s Goodluck Company :
Department a
A(Rs) H(Rs.) cot
Stock (January 1, 1998) 41,000 34,000 94.000
Stock (December 31, 1998) 33,000 44,000 3.000
Purchases, 2,10,000 75,000 1,39
Porchases Returns 14,000 5,000 2,000
Sales: 4,00,000 1,54,000 3,62,000
Sales Returns Nil 4,000 12,000
Mages 73,000 30,000 25,000
Goods were transferred from one department to another at cost price as follows :
From A Department to B Department Rs. 1,000 and to C Deptt. Rs. 6,000 ;
From B Deptt. to A Deptt. Rs, 5,000 and to C Deptt. Rs. 1,000;
From C Deptt. to A Deptt. Rs. 5,000 and to B Deptt. Rs. 5,000.
Apportion equally : Stationery Rs. 900; Postage Rs. 600; General Charges Rs. 39,000 and Insurance Rs. 7,200.
Rent and Taxes amounting to Rs. 45,000 are to be split up in proportion to space occupied, ie., Deptt. Ad,
B2,C3 and Other 1.
Allocate the following further expenses as you think bes
Establishment Rs. 72,000, Bad Debts Rs. 18,000, Advertising Rs. 5,400 and Income-tax Rs. 17,190.
(Meerut 1988)
Solution :
Depaptfhental Trading and Profit & Loss Account
for the year ending 31st December, 1998
Particulars | A S c Total_| Particulars x 5 Total
: Rs] Rs._| Ra, Fs. Rs. Rs Fa.
To Opening Stock| | 41,000] 34,000] 94,000] 1,69,000|By sales | 4,00,000| 1,£4.000 9,16,000
Te Purchases | 2,10,000/ 75,000) 1,39,000] 4,24,000|By Returns | ““ta'000| \"°¢'oco 27,000
To Returns Inward =| 4,000] 12,000) 16,000] Outwards
1 Tranter 10,000] 6,000] 7,000] 23,000|By Transfer | 7,000/ 6,000 23,000
fo Wages 73,000/ 30,000] 25,000] 1,28,000|By Closing | 33; 44,
To Gross Profit e/d} 1,20,000] 60,000| 1,80;000] 3'60,000| Bibcked mn) a tean
454,000] 2,09,000| 4,57 000] 17,20,000 454,000] 2,08,000| 457,000] 11,20,000
Te Stationery. 300/300] 300] 900] By Gross
Je Postage 200) 200/200) —_600|rofit b/d | 1,20,000] 60,000] 1,80,000| 3,60,000
Expenses 13,000] 13,000] 13,000] 39,000]
To insurance 2,400| 2400/2400 “7/200
ToRent and Taxes} 19,500] 10,500| 15,000| 48/000
To Establishment | 32,000] 121000| 28,000 72,000
Bm, @:3:7)
in Bad Debts 8,000) 3,000 7,000} — 18,000]
(6:3: 7)
Te cea isement 2,400) 900) 2,100 5,400)
3:7)
To Net Profit 42,200) 17,700} 1,12,000} 1,71,900|
(befor tax) cfd
1,20,000| 60,000| 1,80,000]“3,60,000| 1,20,000] ~ 60,000] 7,80,000 | 3,60,000
To Income-Tax 4,220) 1,770) 11,200] 17,190] By N. P,
162; 177; 120) (oetore
37,980/ 15,930] 1,00, 54,
ts ‘800 184,710) tax) bya | 42,200| 17,700] 1.12,000] 1,71,900
“42,200 177,900) 42,200] 17,700] 1,12,000] 1,771,900
i
@ scanned with OKEN Scanner Pres area.
rai
6a
we been divided equally
+ Rent and Taxes of other space have been ¢ , af
Note : (1) Rent i eases, bad debis and advertisement expenses have been apportio ned in net sales ratio,
aonnrme-un has been divided in the ratio of net profit before tax
see , 1 Wed Price)
na er eaftertta prverit (Inter-Departmental Transfers At Loa .
ee eth eral fete He Ft a ose Peter eH af, 318 8, % fet ea,
re Yak wd ek en re weet era ;
See books of Mr. V. 8. Gupta. Prepare Departmental Trading
1998 after adjusting the unrealised departmental profits,
were, fie Be TH
eee Rem 1098 aD
The following halances were extracted from the
end Profit & Loss At for the year ended 31st December,
Pa
co Deptt. A Deptt. 8
Rs. Ps.
25,000 20,000
ning stock i
pecs 325,000 455000
Sales 5,00,000 750,000
3 fest B eres 2 62500 Fo FR Re fs al & agua ler aar & sree reat oe &
wi
Ug sas foam Gt fae SO are ert RS Te Beara aT a
(@) fm a st Sam efter 50,000 & fara fern BB BTeT 10,000 Fo a ret afinfera @ 1
(is) fas B = fers efter 1,00,000 Fo @, Fara fat AB wet 15,000 Fo ar HIeT Bfisfera @ 1
: (as) fae A oer B saat tele H aee 5,000 Fo TAT 7,500 Fo aT ATet (SMa! feraMT SI IITA FO APTI
(9) se of aes ore at a
General Expenses incurred for both the departments were Rs. 62,500 which are to be divided in
departmental sales ratio and you are also supplied with the following information :
9) Each department transfers its goods to other department at its usual selling price.
(@) Closing stock of Department A is Rs. 50,000 including goods from Department B for Rs. 10,000
(Gi) Closing stock of Department B is Rs. 1,00,000 including goods from Department A for Rs. 15,000
i») Opening stock of Department A and Department B include goods of the value of Rs. 5,000 and Rs. 7,500
taken from Department B and Department A respectively at cost to transferee departments.
{v) The gross profit is uniform from year to year.
Solution :
Departmental Trading And Profit & Loss Account of Mr. V. S. Gupta
for the year ended 31st December, 1998
Deptt. A ] Deptt B Peat A | Deptt 8
Re Ps, Rs Rs,
Te Opening Stock | _25,000) 20,000] By Sale 100,000] _7,50,000
To Purchases 3.25,000| 4,55,000] By Closing Stock *50,000] 1,00,000
T0G.P.cid 2,00,000] _3.75,000 ihe eis
5150000] 50,
eee 50,000] @,50,000| 5,50,000] 650,000
(0 General Expenses (10: 15) | 25,000) 7.500]
To Profit transferred to oe pagooay SaRee
General P.& L. ale 1.75,000| _9,37,800
200.000) 3:75,000| 72,00,000| 3,76,000
| | 2ox.900) 375:
@ scanned with OKEN Scanner A
fear ent 6AAS
General Profit & Loss Account :
Jo Closing Stock Reserve wy Prot
i 7 Profit fromm
beat 8 Dopit. A 4.75000
int Dept. 8 337 500
Laid By Oponing Stock Reserva
Doptt. A 2,500 =e
Doptt. 8 ie
Working Notes :
AY” As the rate of gross prot is uniform from year to year, tho amount of unrealised proft included in the opening
and closing stocks wil be calculatod atthe ann rote
Thera of goss prot aro: Deptt. 2.2 5 094 ao opt. 8 223! 100 = 5%
42)" The Opening Stock Resorve is : (2). Tho Closing Stock Reserve i
Deptt. A ~ 50% of 5,00
- 10,000 = Rs. 5,000
Deptt.'8 ~40% of 7,50( Deptt. A - 50% of 10, s.
Deptt. B- 40% of 15,000 = As. 6,000
erat
1. feria wa ea 2 Renta et aera
What are the Departmental Accounts ? WI mental Accounts ?
feria art oT aaa gt are & on oa a eee aa ame (Garhwal 1997)
What are the advantages of Departmental Accounts ? What are the difficulties in their preparation 2
3. Parte arte et ara ad are ara some at at en oars By 88 oat a Te Fae
er SH arene aera BT oe Geer Perr Prat one 21
“While preparing Departmental Trading and Profit & Loss A/c, the apportionment of indirect expenses is
necessary.” Discuss such expenses and the basis on which their apportionment is made. (Meerut 1995)
4, er are aI Ie aa ea Ba OA es od 9 Poe sere oe Peart Peat ort 7?
On what basis joint expenses are apportioned among different departments while preparing
departmental trading and profit & loss a/c ? (Gorakhpur 1996)
5, franta erat 3 aaa ‘sea’ sire ‘oma’ oa ar E 2 aor ant a dar S ara gs Ae S seat F
fears aga
What are the usual ‘direct’ and ‘indirect’ charges in departmental accounts ? Discuss the principles of
allocation of such items at the time of preparation of final accounts.
6. mer ait Pa A arene BA) GH ral Fo ara Gave at ge wales A ges A aA aS RA
wae at aa E?
Distinguish between Branch and Department. What entries are made in the books of Head Office to
incorporate the Trial Balance received from a branch. (Meerut 1998)
3 Rear WaT
fee garage a 31 HL 1998 a aaret OM amt oret-ad. & fee arta aren Prefab -
Following is the Profit and Loss Account of Hind Electronics for half-year ending 31st March 1998 :
Rs. Rs
Purchases : Sales
Transistors (x) 1,860,000 Transistors (x) 1,75,000
Tape Recorders (Y) 1,25,000 ‘Tape Recorders (Y) 1,40,000
lestuments fr Repalts eZ) 80,000 Sanloe fr Repairs ee. (2) ‘35,000
a x 3-1
a 10,800 Transistors (X) 60,100
Sundry Expenses 1,000 Tape Recorders (Y) 20,300
Profit 40,200 Instruments for Repairs (Z) 44,600,
475,000 475,000,
ca
(oy Seed ot Bu Regd wr BB AE oe eH aR MAF BEL
@ scanned with OKEN Scanner Pris aerate
6A16
ey ee ry gh Pat FH BH
ae }
§ ‘ K wis
Saga she vag @ X ee Y PTT
co ene my er 00 6 81 AAC Y FF
Co eee a Fe ee vr a arg Hat '
teern fk Faw rm wk RTE aT ATER |
" : : the Factory.
Tr ind Tape Recorders have been sold in Showroom and Repais FX male paca
{S) Apportionment of Salaries and Wages in Showroom 3/4, Factory 1/4, Salat
X and Y Departments. ;
BO ee 500 pero Rent of Showroom i apportioned equallyin X and Y Departmen
{(@) Sundry Expenses are apportioned in the Sales Ratio of the Departments. seh
tal Trading and Profit and Loss Account. st 1985,
at eaanaaer hamsters (X) Rs. 53,700; Tape Recorders () Rs. 3,000; Net Loss Repairing (7) Rs.
16,500) :
Se fae ‘a ata Sara Fat 8 ak & ara F aT 1998 & fer sarees fresnel oe Frat we A UAT
eat
‘Z Lid. sells two products A and B. At the year end the accountant produces the information of trading activities
for 1998 in the following form :
rt a1
2 a Fe ater a 8
Rs. Rs,
‘To Opening Stock 82,500 BySales: A 1,50,000
To Purchases: A 4,10,000, B 2,40,000
,73,000 By Closin
To Gross Profit cid 122009, °Y Cosine Stork elooed
4,87,500 487.500,
To Sales Staff Salaries 22000"
eee $5000. By Gross Profit bid 7,22,000
To Administrative Expenses 418,500
To Net Proft 32/500
8 8 oh ere Boar cad AK SN ae aN ‘at hea’ genet aH eT Hema & favo S fee
safes awh ee A gr fee & :
chee :
@ ‘a aefen : ee ped feraR 31, 1998
‘a a ef A
(i) Fare ataTe BaF (Sales Staff Salary) # 57,500 a
aaa & fas 1 "915,000 ¥o seme ‘sr a Fea & we wy A ae sik aart
(ity a ear ‘at aeae = ARTA Ht anf Frererara @ ae
Ebene et oe TLR TA vet
‘more useful for analysing the t aia given below, you are requi :
Further infomation SMB etvities of products A and B resperivens. ora the accounts in a form
(Stocks of A van. 1, 1998
Dec. 31, 1998
Rs.
‘undry adminstrative
ad expenses
Rs. 72,000. Net Pront A, Rete 500; B, R:
@ scanned with OKEN Scanner 6A.17
pear aaa at 72 &
i q agent 1 eek erat FIT TA fe -
: ae ae et fret : oaks:
eH ETT TATE Ty A,B, Cand D. Following are the balances taken from their
am and Shyam has four departments 1a a A ¢ 2
Ro Fs. 06 8,000
5,000 12.008 300 18,000
pening stock 45,000 eon 9,500 20,000
rohes ‘ k
Sales Aa 3000 414/000 2000 4,500
fosing Stoo : a
pgs foot Borgo a2 a gs
a safe & or, Raut
Farrar & 2,500 Bo; ffs A 1,800 FoF ae
sake fawn weeuy oS see fata TN
gt
faunia Saeki I aan ag ear FAT 3 A FL
oa ‘o be divided in the ratio of departme
Expenses for this period which are
Rent and Rates Te 2,500; Sundry ‘Expenses Rs. 1,800; and Salaries Rs. 10,500.
‘The manager of each department is entitled to 124% commission on each departments profits ar
1 AAT 10,500 %o | :
206 gaara (atten or ei A Te) FCT a
1
safer at fsa |
intal sales are as follows :
rived at after
¢ of profit with the
deducting the above expenses.
1 and Loss Account and determine the percentag
(Gorakhpur 1978)
Prepare Departmental Trading and Profit
Sales of each department.
(Answer ! Profit: A, Rs. 2439.50; B, Rs. 161409; C, Rs. 63.525 D (Loss) Bs. 4,505.08).
rey ar ay 1 fers at 3998 1g ft re ll XE YT Ge TS rs STS FT ES
Fe erat eer SEE OL SE TH TH Em Fy
FR 40% TA 30% BI 7
frtfsfian Gard sua 2
‘The owner of a departmental store wants to know f=parately the profits of his two departments X and Y for
the month of January 1998. For certain unavoidable reasons he could not ascertain the closing stock. But for these
departments the rate of gross profit (without considering the direct expenses) is 40% and 30% respectively.
Following information is available—
a
a
Deptt. x Deptt. Y
Stock on Jan. 1, 1998 eon ao
Paces 42,000 36,000
Direct Expenses ean 2,800
oraara farm ae
soot al BA via faurr &, & sera Seer 10,800 vo @ fora fm ua feurit A-werT we Bae Ie
fannie argue # afer air 1 ar aie fait at ger Fawr 102,000 Go Z1
ait Paani & ey ara aia
fa i
a inde pense oe Et ae aes la In five departments) are Rs. 10,800. Out of these 1/6th
ee : Seay 7
Ses. The sales ofthe femaiing three departments are Rs. 102000. en nes nmeraNoofGeparimenta
i out the profits of the two departments. ee
nswer't
wer: Gross bat ae 16,800; Y, Rs. 10,800; Net Profit - X, Rs, 8,850; Y, Rs. a of
ann Seq Sree aie a es ae al STEMS 30.94, 1998, Beare SA aT. 6 HTS ST
ae (eae re St 0: a :
ace ai of Fr. 08, 0 Tan fave tal Sore tea
for the sik months onded ge 2) aoe rantto ascertain separately the net profit of ‘A’, ‘B' and ‘C departments
af departmental scconating l'i'ace anda this day it was not practicable to take stock but an adequate system
usual rates of gross profit for the departments concerned (without
charging direct expenses) are 20%,
departmental winevet ) »» 30% and 40% on turnover. Indirect expenses are charged in proportion to
@ scanned with OKEN Scanner Frere, ware
re “to, Fm Sisk
000 . 7,000
‘Stock on 1-1-1998 4700 18300 12'000
Siler 88 1980 21050
Bist Expenses ee at :
i ae) 4,200 et FD BAI TT oe ar ea fa of wae |
a safle es are (ora fe 009
eral Fa Fa 99 a) ea eg aero ae ie
Fees AG} fect dae P30 ching those relating fo other departments)
sales of RS. 84,000. " on the estimated
‘onl epore ast sement forthe directors. Aso make Stock Reserve of 10% for each depariment oni estimated
va Anoners Coing Stok 1 6,500 and C Rs. 5,800; Net Loss A Rs. 240, Net Profit: B Rs,
(Answer : Closing Stock : A Rs. 2,900, B Rs,
1 6 mre a ane arafer safe % fra apatra Te
400, and C Rs. 1,570)
4, frafefiaa qua sik Pty & ais ferit & 30 Fr, 1998 a a wo BE 30 1998
anf cuit GQ w STAs WS AT-BAT Gra FART | ates foo ® areata
10% Sr RaT ATT TATA STAT :
From the Tolbwing information and instructions, make out a Trading and Profit & Loss Account showing the
wee S aqua ye ne
im peri ths ending 30th June, 1998, A sto%
estimated net profit of the three departments for interim period of six mon A
reserve of To% on the estimated value of stock as on 30th June, 1998 is tc be made before arriving at the estimated
net profit of the departments concerned.
. i. x Y Zz
bf Bn
Opening Stock 10,000 12, nf
Brect Expenses 4,000 2,500 1/000
Seles 25,000 20,000 10,000
Purchases 12,000 10,000 8,000
Saee & fea eer at or ava el a fag weae feunll a saat fant oe waret aM Bt ATA BY HEE 40%,
30% ae 20% | saree BTA 2,700 % Se reap a ted gu fea Per oar ea
seTPnG We 10% wivert at a B are fant & strane we atest 2 1 1-1-1998 Fy aa ayittt a1 ET 33,000 Fo AT |
1k was not possible for the management to take stock but the normal rates of gross profit for the departments
concerned were 40%, 30% and 20% respectively on sales. The indirect expenses amounted to Rs. 2,700 which is
to be distributed in the ratio of amounts of gross profit earned and depreciation on Plant and Machinery @ 10%
er annum to be apportioned on the basis of turnover. The value of Plant and Machinery on 1-1-98 was Re. 33,000.
7 ao ‘Closing Stock : X Rs. 11,000, Y Rs. 10,500, Z Rs. 6,000; Net Profit: X Rs. 6,650, Y Rs, 3,450, Z
% X fee & oa ger a at Ps 1 Fes feria
31 Fema, 1998 3 ara aT IE, TT
) Parte savas er ar aft |
X Ltd. has three departments A, B and C. From the partic is :
(2) the values of stock as on sts December, 1998, and ules en below compute
(b) the departmental trading profit or loss,
@
A B
pee ae
Purchases © 1,486,000 1,24,000 481000
GP. on normal selling prices hiewes ee Tagg
*
331%
20%
i) a Ben a ag ee WT hy autos Poca veh a
&B Borag us Year certain tems were sold at discov St pete as! | Se a ae ee ge ee
Sales Shown above, The items sold at discount were : ints were reflected in the values of
Deptt. A Deptt.
Sales at normal prices fs Be? mR
Sales at actual prices 19,000 3,000 1,000
(Answer : G. P. : A, Rs. 32,500; B, 39,400; c, 24,600; Closing Stock : A Rs. 30,000, BRs. 40,000, € Rs
10,000)
@ scanned with OKEN Scanner Prarie 6A.19
15 = Sales at actual price + Discount
« Sotes at normal price
Ha Sn oe at 3 Fe Pet see a =
Bc eer 9 urns fr hie departments as flows
“A businessman mad aa
400 Articles
poner 2.800 articles | Tota Cost Rs, 10,200
Deerimeat c ‘800 Articles |
seed fast fet er wee:
Maver of three departments were as follows
Department A 360 articles @ Rs. 15 per article
Department B 3,000 articles @ Rs. 18 per article
Department C 900 articles @ Rs. 6 per article
ea esr ar arenes ees aE AT:
Opening stocks of three departments were as follows :
Department A 200 articles
Department B 800 articles
Department C 120 articles
at faut & wae amr at war 21 at fauna antes ara aay B1
“The percentage of Gross Profit for the three departments is same. You are required to prepare Departmental
(Meerut 1998)
Trading Accounts.
(Ans. Gross Profit: Deptt A Rs. 4,500; Deptt. B Rs. 45,000; Deptt.C Rs. 4,500)
9. sia Prorifisa aac we crear & meer fare oft ferere @ fee maT t —
“You are given the following particulars of a business having three departments :~
Department Purchase Opening Stock Closing Stock
A 1,500 Units 200 Units 100 Units
B 1/000 Units 300 Units 160 Units
c 21000 Units 4150 Units 200 Units
Siies 100 Scout i)” 250
irs s ie Furniture
Feral kon Jan. 1, 1988 5850 A~Current Aesount (Dr) 00
+ Wages 8 Expenses < 2000 Boe (Gr 120
~ Sales 1000 C=" (cr 200
Sundry Debtors 7000 G—Loan Ale (at 5% 500
Sunary Creators 2300 A~Caplal Ale (Gr, 500
Sslaries 00 B—Capital Ae (Cr 500
Rent, Rates and Taxes 300 C—Capital Ae (Cr 500
Fuel and Light 30 Gash in Hand 25
Insurance-Pie and Workmen's Compensation 140 Cash at Bank 1280
38
Ute insurance Premium
efter 31 Reema, 1998— FFF 2,100 Fo, WEEN 950 Fo 1
31 Feera, 1998 3 sitert a ant wert ET 325 Fo 1
at waa 5% sere | —s fanart A-7/20, B-6/20, 31K C-7/20
sets farm a arte &e A cafes era ae ef ay aT MEL Arar Ua RT
Stock on ist December, 1998" Engines RS. 2100) Repairs Re Bs, et TEC!
Surrender value of Life Policy on 31st December, 1998 ~ Rs, 325.
Interest on Capital 5% p.a. Profit sharing ratio A 7/20, B 6/20, C 7/20. Pi
‘Accounts of the Departments and the Profit and Loss Account and Balance Sheet of ee Pat
(Answer + Gross Profit : Engines Deptt. Rs. 2,600, Repairs Deptt. Rs. 3,15 ;
‘Total Net Profit Rs. 4,260, Balance Sheet total Rs. 8,780)”
18. fre cee 8 Pranta arnt ei area Fe
| Fr Zara er Fae TRC :
From the following Tal Balance prepare Departmental Trading and Profit & Loss Account and Balance
Sheet :
‘Stock on Jan. 1, 1998 Department A at) Cr. Rs. (i
ea =e ey
sol is
Sales i 1 3/020
: 8 Fe 6,080
i 5,125 )
820
Rent, Rates, Taxes and Insur e
Sundry Expenses’ 0nd surance ao
Salaries. Be
tighting and Heating 300
Discounts Allowed : Me
Discounts Received 0
aon 222 @
garg ac s .
ini and Fittir i
Machinery nee aa. a
ag
@ scanned with OKEN Scanner Pres a P 6a23
606
undry Debtors
Sunay Creditors 1880
Capita, 450 shai
Brawings 1,007
hat Bank at
cane 17,896,
atk erat
ere 2B Pener A er an aerate wero 42 50 81
(3) Pas ra 28 A Pew site 1/31 fem if aed
Rents, Taxes and Insurance, Sundry Expenses,
(3 fans a aR ald Tr
(4) 83 ae we set ae aera Fear fom wed aie CGettTEM 3) % aeTA Hf aia B
(5) Bata Ter Rafe stk HT we 10 fete Bre err a SH 3/4 A PTB aa 1/4 B faa A ad aed
(6) B faers at A fern 3 fer’ at ae Ve | 50 Go HoH H enfe H1
(7) 31 Feary 1998 BY sifean TeftN—A FANT, 1,674 Bo, B FANT 1,205 0 1
Following is the further information—
(1) Internal transfer of goods from department A to department B Rs. 42.
(2) Following expenses are to be apportionable 2/3rd A department and 1/3rd B department : Rent, Rat
Taxes and Insurance, Sundry Expenses, Salaries, Lighting and Heating, Carriage Inwards
(3) Advertising is to be apportioned equally.
(4) Discount allowed and discount received are apportionable in the ratio of departmental Sales and Purchases
(excluding internal transfers) respectively.
(5) Charge depreciation at 10% on Furniture & Fittings and Machinery which is to be charged 3/4th to A
department and 1/4th to B department.
(6) Wages include Rs. 50 for, services rendered by B department to A department.
(7 Closing Stock on Dec. 31, 1998-A department Rs. 1,674, B department Rs. 1,205.
(Answer : A Deptt. Net Loss Rs. 126; B Deptt. Net Profit Rs. 602; Total of Balance Sheet Rs. 6,652).
‘alaries, Lighting and Heating, Carriage
1, Short Answer Questions (ag waita wet) :
(i) _ State the problems of departmental accounting.
feuria career a afcareat at aaa |
(i) Give two examples of such indirect expenses which are allocated between different departments on the basis
of ‘number of workers”,
RBS omer wel S scree Se aR PPT Reet & ste A ater A de B ava we ae a
(iii) Explain with example the term inter-departmental transfer.
Se Raat BeAr BT TATE FHT MATT |
(iv) If the goods are transferred from department X to department Y at selling price which includes a profit of 25
on cost, calculate the amount of stock reserve on such closing stock valued at Rs, 75,000 of department
Ae set ome x & Farr Yat foe er oe wear rar Ter Poa APTA Ge 25% a anfter Bat tS
Sa are oe eae aia a ae A err ee Pear YB ware BT ARUiI 75,000 ob)
' (Answer : Rs. 15,000)
(©) In the three departments of a business, the rate of gross profit is same and the ratio of sales in these
departments is 5: 3 : 2. What is the ratio of the cost price to sales of these departments.
Se Sere & ate fesrit A acer a a xe TET & ote gH Pret Reh a sigue Sto 3 Fo 2 BF
Rrarit a Fao or amr & segura aa B ? (Answer :5:3:2)
Objective Type Questions (Feafrs wer)
@ State whether the following statements are ‘True’ or ‘False’ :
wo seal Br wer ae Bar ‘ota:
{rading results are prepared because of statutory requirements.
SOR oF Rae: orate 3 are Aare Bea aa |
-
@ scanned with OKEN Scanner frtrs e-y
1es will be one and the same if the gross profit margin js
6A.24
(ii) ‘The ratio of'sale price and the ratio of cost pric
iform for all the departments.
itor aT oe ud SMe AE wT SIT eae TT iT ake ath Pmt tt aw ar A
we Bart BI
(iii) All expenses are (9 be srporiloned between the departments on the basis
ah aa Fy Punt ® dhe Ra segue F far we
(iv). Depreciation should be apportioned on the basis of value of machinery in each department.
ae a vee Bam Hower Byer amere oe fens we ae
(v) IF inter-departmental transfer is based on market price provision must be made
profit included in the stocks lying with the transferee department. ar, 2
aft see fSunfa SeNTCOT ITE ART TA SIT at geared Prat Hoos era Halter
ARR EL aM HT WUT HOT staTaT gra Bt
(vi) Provision for the unrealised profit is to be charged to departmental profit and loss account.
Bagge EAT wear aT eats ere a fe Sar we
(vii) In departmental accounts, all expenditures are allocated in equal ratio.
fawnia ae wh eal waar arya H ater se BI
(viii) Super Bazar is an example of departmental store.
aie sag Pune wee HH TTT FI
(Answer: True : ii, iv, v, viii
False : iii, vi, vii)
3. Fillinthe blanks ead
