Unique Test ID - PS # 11/ACC
INTER-ACCOUNTS
TEST: DEPARTMENTAL ACCOUNTS
DURATION:-1 HR TOTAL MARKS:-30
Question 1: 15 Marks
The books of account of Mr. Maan of Mumbai showed the following figures:
31.3.2018 31.3.2019
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Furniture & fixtures 2,60,000 2,34,000
Stock 2,45,000 3,20,000
Debtors 1,25,000 ?
Cash in hand & bank 1,10,000 ?
Creditors 1,35,000 1,90,000
Bills payable 70,000 80,000
Outstanding salaries 19,000 20,000
An analysis of the cash book revealed the following:
`
Cash sales 16,20,000
Collection from debtors 10,58,000
Discount allowed to debtors 20,000
Cash purchases 6,15,000
Payment to creditors 9,73,000
Discount received from creditors 32,000
Payment for bills payable 4,30,000
Drawings for domestic expenses 1,20,000
Salaries paid 2,36,000
Rent paid 1,32,000
Sundry trade expenses 81,000
Depreciation is provided on furniture & fixtures @10% p.a. on diminishing balance method. Mr. Maan
maintains a steady gross profit rate of 25% on sales.
You are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2019 and
Balance Sheet as on that date.
Question 2: 10 Marks
Ram, Sham and Mahaan sons of Prabhu Dyal are running Punya Hotel in Chennai. Ram is heading Room
division (A), Sham is heading banquet division (B) and Mahaan is heading Restaurant division (C). Each of
the three brothers would receive 60% of the profits, if any, of the department of which he was incharge and
remaining combined profits would be shared in 2:2:1 ratio. The following is the Trading and Profit and Loss
Account of the firm for the year ended March 31,20 21:
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Unique Test ID - PS # 11/ACC
(`) (`) (`) (`)
To Opening Stock: By Sales:
Room (A) 25,650 Room (A) 2,70,000
Banquet (B) 18,000 Banquet (B) 1,65,000
Restaurant (C) 19,500 63,150 Restaurant (C) 86,700 5,21,700
To Purchases: Room (A) 2,35,000 By Discount received 1,650
Banquet (B) 1,56,000 By Closing Stock:
Restaurant (C) 84,200 4,75,200 Room (A) 55,300
To Salaries 34,400 Banquet (B) 31,800
To Royalties 8,000 Restaurant (C) 42,500 1,29,600
To Parking fee& car washing 9,600
charges
To Discount allowed 2,500
To Misc. Exp. 7,000
To Depreciation 1,160 62,660
To Net Profit 51,940
Total 6,52,950 Total 6,52,950
Prepare: (I) Departmental Trading and Profit and Loss Account alongwith combined Profit & Loss account
and (II) Profit and Loss Appropriation Account after incorporating the following information:
(i) Closing stock of Dept. B includes goods amounting ` 3,500 being transferred from Dept. A
(ii) Stock value ` 9,300 and other goods of the value of ` 1,500 were transferred at selling price by
Departments A and C respectively to Department B.
(iii) The details of salaries were as follows:
(1) Admin Office 60%, Pantry 40%
(2) Allocate Admin Office in the proportion of 3: 2:1 among the Departments A, B, C
(3) Distribute Pantry expenses equally among the Department A and B.
(iv) The parking fee is ` 500 per month which is to be divided equally between Departments A, B& C.
(v) All other expenses are to be allocated in ratio of 2:2:1.
(vi) Discounts received are to be credited to the three Departments as follows: A :` 650; B : ` 600; C : ` 400.
(vii) The opening stock of Department B does not include any goods transfer red from other departments and
closing stock of Department B does not include any stock transferred from Department C.
Question 3: 5 Marks
The following balances were extracted from the books of M/s Division. You are required to prepare
Departmental Trading Account and Profit and Loss account for the year ended 31st December, 2017 after
adjusting the unrealized department profits if any.
Deptt. A Deptt. B
` `
Opening Stock 50,000 40,000
Purchases 6,50,000 9,10,000
Sales 10,00,000 15,00,000
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Unique Test ID - PS # 11/ACC
General expenses incurred for both the departments were ` 1,25,000 and you are also supplied with the
following information: (a) Closing stock of Department A ` 1,00,000 including goods from Department B for `
20,000 at cost of Department A. (b) Closing stock of Department B ` 2,00,000 including goods from
Department A for ` 30,000 at cost to Department B. (c) Opening stock of Department A and Department B
include goods of the value of ` 10,000 and ` 15,000 taken from Department B and Department A respectively
at cost to transferee departments, (d) The rate of gross profit is uniform from year to year.
(RTP November 2018)
