Items Dept A Dept B Common Rs expenses Commission Opening stock on 12000 1.1.2020 Purchases Sales Closing stock Wages Return in Return out 13000 1500 24520 86030 12100 22800 payable Salaries Advertising Rates Insurance Repairs Lighting heating 2000 36544 89070 13300 15100 2500 1450 400 21200 1030 4070 800 520 544 Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid. Commission, salaries and advertising are to be charged to the departments in proportion on net(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and 3/4th to the department B. You are required to prepare departmental trading account.
Items Dept A Dept B Common Rs expenses Commission Opening stock on 12000 1.1.2020 Purchases Sales Closing stock Wages Return in Return out 13000 1500 24520 86030 12100 22800 payable Salaries Advertising Rates Insurance Repairs Lighting heating 2000 36544 89070 13300 15100 2500 1450 400 21200 1030 4070 800 520 544 Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid. Commission, salaries and advertising are to be charged to the departments in proportion on net(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and 3/4th to the department B. You are required to prepare departmental trading account.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 99.4C
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Question
Mr X runs a business which has two department. The following balance were extracted from his books on 30.6.2020:
Items Dept A Dept B Common expenses Rs
Opening stock on 1.1.2020 12000 13000 Commission payable 1500
Purchases 24520 36544 Salaries 15100
Sales 86030 89070 Advertising 2500
Closing stock 12100 13300 Rates 1450
Wages 22800 21200 Insurance 400
Return in 1030 4070 Repairs 800
Return out 520 544 Lighting heating 2000
Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid. Commission, salaries and advertising are to be charged to the departments in proportion on net(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and 3/4th to the department B. You are required to prepare departmental trading account.
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