COC Departmental Accounting CA/CMA Santosh Kumar

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DEPARTMENTAL ACCOUNTING

Question:1 From the following figures prepare accounts to disclose total profit and the profit of the two departments.
X and Y :
Rs. Rs.
Opening Stock : X 15,200 Sales : X 1,00,000
Y 10,800 Y 80,000
Purchase : X 75,100 Purchase Returns : X 1,100
Y 69,800 Y 800
Carriage inwards 2,860
Salaries : X 9,000 Discount Received 1,430
Y 8,500
General (Salaries) 11,600
Rent and Rates 6,000
Advertising 8,100
Insurance 1,000
General Expenses 5,400
Discount Allowed 1,800
Accountancy charges 500
The following Further information is supplied:
(a) Goods transferred from department X to Y were Rs. 5,000. This has not been recorded.
(b) General salaries are to be allocated equally.
(c) Allocate carriage inward and discount received on suitable basis.
(d) The area occupied is in the ratio of 3: 2.
(e) Insurance premium is for a comprehensive policy, allocation being inconvenient.
(f) The closing Stocks of the two departments were: X, Rs. 17,800 and Y, Rs. 15,600.
(g) Allocate Advertising, General Expenses and Discount Allowed in the ratio of Sales.
( BAHUT HI AASAN QUESTION)

Question:2 Green & Co, has two departments P and Q. Department P Sells goods to Department Q at normal
selling prices. From the following particulars prepare Departmental Trading and Profit & Loss Account for the
year ended 31-3-1994 and also ascertain the Net Profit to be transferred to Balance Sheet.
Particulars Department P Rs, Department Q Rs,
Opening stock 1,00,000 Nil
Purchases 23,00,000 2,00,000
Goods from Department P --------- 7,00,000
Wages -- 1,00,000 1,60,000
Traveling expenses 10,000 1,40,000
Closing stock at cost to the Dept. 5,00,000 1,80,000
Sales 23,00,000 15,00,000
Printing and stationary 20,000 16,000

The following expenses incurred for both the departments were not apportioned between the departments:
(a) Salaries Rs. 2,70,000
(b) Advertisement expenses Rs. 90,000
(c) General expenses Rs. 8,00,000
(d) Depreciation @ 25% on the machinery value of Rs, 48,000. Advertisement expenses are to be apportioned in the
turnover ratio, salaries in 2 : 1 ratio and depreciation in 1:3 ratio between the departments P and Q General expenses
are to be apportioned in 3 : 1 ratio.

(TYPICAL QUESTION BUT ……………………………………..) (CA-1994 May, 20 Marks)

Question:3 From the following balance extracted from the books of Lux cozi , Prepare Departmental Trading
st
Account and General Profit & Loss Account for the year ended 3 1 October, 2001 and a Balance Sheet as on that date
after adjusting the unrealized departmental profits if any:-

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Dr, ( Rs,) Cr, { Rs,)

Capital 3,00,000
Land & Building 1,25,000
Furniture 25,000
Opening stock Dept, A 30,000
Dept, B 40,000
Purchases Dept, A 10,00,000
Dept, B 15,00,000
Sales Dept, A 20,00,000
Dept, B 32,00,00
General Expenses 14,00,000
Sundry Debtors 2,00,000
Sundry Creditors 1,00,000
Drawings 2,80,000
Cash & Bank 10,00,000
Total 56,00,000 56,00,000

Additional information:
1. Closing stock of Dept A Rs. 1,30,000 including goods from dept B Rs. 40,000 at cost to Dept A and Dept B
Rs. 2,60,000 including goods from Dept A Rs. 90,000 at cost to Dept B.
2. Sale of Dept A include transfer of goods to Dept B of the value of Rs. 2,00,000 and sales of Dept B include
transfer of goods to Dept A of the value of Rs. 3,00,000 both at market price to transferor Depts.
3. Opening stock of Dept A and Dept B, includes goods of the value of Rs. 10,000 and
Rs. 15,000 taken from Dept B and Dept A respectively at cost to transferee Dept.
4. Depreciate Land & building by 5% and furniture by 10% p.a.
(ICWA-INTER- 16 MARKS), (CA- PE 2- 16 marks)

Question:4 A Company manufacturing electronic components operates with Departments. Transfers are made
between the departments of both purchased goods and manufactured finished goods. Goods purchased are
transferred at cost and manufacturing goods are transferred only at selling price as is the case with open market.
Transactions for the year ended 30th June, 2017 are given below:
Particulars Dept. X Rs. Dept. Y Rs.
Opening stock 20,000 15,000
Sales 1,90,000 1,35,000
Wages 12,500 7,500
Purchases 1,00,000 80,000
Closing stock:
Purchased goods 2,000 5,000
Manufactured goods 7,000 8,000

The following were the transfers

From Dept. X to Dept. Y :- purchased goods Rs. 6,000 and Finished goods Rs. 20,000 and
from Dept. Y to Dept. X :- Purchased goods Rs. 5,000 and finished goods Rs. 35,000. Stocks were valued at cost to the
Dept. concerned. Only in closing stock of manufactured goods in the Dept, transferred finished goods are 20%
th
Draw out Departmental Trading Account and the General P/L Account for the year ended 30 June. 2017.

Question:5 Calculate stock Reserve. A,B,C are three departments:

Content Ratio Profit Ratio Closing stock
A Nil ¼ of sales 15,000
B 2/10 1/5 of cost 22,000
C 5/15 not available 40,000
Assume A sales to B and B sales to C.
(Ans: Stock reserve 3878)

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Question:6 Calculate stock Reserve. A,B,C,D are four departments:

Content Ratio Profit Ratio Closing stock
A Nil 1/10 of cost 40,000
B 7/15 ¼ of cost 50,000

C 8/20 1/6 on sales 70,000

D 6/24 1/10 of sales 80,000
Assume A sales to B, B sales to C and C Sales to D. (Ans: 13563)
( KUCHH ACHCHHA SA FEEL HO RAHA HAI, PATA NAHI KYON ?)

Question:7 FGH Ltd. has three departments I.J.K. The following information is provided for the year ended
31.3.2004:
I J K
Rs. Rs. Rs.
Opening stock 5,000 8,000 19,000
Opening reserve for unrealized profit …… 2,000 3,000
Material 16,000 20,000 ……
Direct Labour 9,000 10,000 ……
Closing stock 5,000 20,000 5,000
Sales ……. ……. 80,000
Area occupied (Sq.mtr.) 2,500 1,500 1000
No. of employees 30 20 10

Stock of each department are at cost to the department concerned.

Stock of dept. I are transferred to Dept. J at cost plus 20% and stock of J are transferred to K at a gross profit of 20% on
sales. Other common expenses are Salaries and Staff Welfare Rs.18,000 ,Rent Rs. 6,000. Prepare Departmental Trading,
profit and Loss Account for the year ending 31.3.2004. (CA-IPCC, CMA-INTER)

Question:8 A firm had two departments, cloth and readymade clothes. The clothes were made by the firm it sells
out of cloth supplied by the cloth department at its usual selling price. From the following figures prepare departmental
st
Trading and Profit & Loss accounts for the year ended 31 March, 2017:-

Cloth Department Readymade clothes

Rs. Rs.
st
Opening stock on 1 April, 2016 3,00,000 50,000
Purchases 20,00,000 15,000
Sales 22,00,000 4,50,000
Transfer to Readymade Clothes Department 3,00,000
Expenses—Manufacturing 60,000
Selling 20,000 6,000
st
Stock on 31 march, 2017 2,00,000 60,000
The stocks in the readymade clothes department may be considered as consisting of 75% cloth and 25% other
expenses. The cloth Department earned gross profit at the rate of 15% in 2015-16. General expenses of the business
as a whole came to Rs. 1,10,000. (CA- Inter- 12 marks)

Question:9 Complex Ltd. has three departments A, B and C the following information is provided;-
Particulars A B C
Rs. Rs. Rs.
Opening stock 3,000 4,000 6,000
Consumption of Direct Materials 8,000 12,000
Wages 5,000 10,000
Closing Stock 4,000 14,000 8,000
Sales 34,000
Stocks of each department are valued at cost to the department concerned. Stocks of A department are transferred
to B at a margin of 50% above departmental cost. Stocks of B department are transferred to C department at a
margin of 10% above departmental cost. Other expenses were:
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Salaries = Rs. 2,000 Printing & Stationary Rs. 1,000

Rent Rs. 6,000 Interest paid Rs. 4,000
Depreciation Rs. 3,000
Allocate expenses in the ratio of departmental gross profit. Opening figures of reserves for unrealized profit on
departmental stocks were : Department B: Rs. 1,000
Department C: Rs. 2,000
Prepare Departmental Trading and Profit & Loss a/c. (CMA- Inter 16 marks)

Question:10 X Ltd. has two departments A and B. Form the following particulars prepare the consolidated Trading
st
Account and Departmental Trading Account for the year ending 31 December, 2002
A B
Rs. Rs.
Opening Stock (at cost) 20,000 12,000
Purchases 92,000 68,000
Sales 1,40,000 1,12,000
Wages 12,000 8,000
Carriage 2,000 2,000
Closing Stock:
(i) Purchased Goods 4,500 6,000
(ii) Finished Goods 24,000 14,000
Purchased goods transferred:
By B to A 10,000
By A to B 8,000
Finished goods transferred:
By A to B 35,000
By B to A 40,000

Return of finished goods:

By A to B 10,000
By B to A 7,000
You are informed that purchased goods have been transferred mutually at their respective departmental purchase cost
and finished goods at a profit of 25% over dept. cost and that 20% of the finished stock (closing) at each department
represented finished goods received from the other department.
(ICWA-INTER 16 MARKS)
Question:11 Telerad & Co. has two departments A and B. From the following particulars, Prepare Departmental
st
Trading Account and Consolidated Trading Account for the year ending on 31 March, 2002
Department A (Rs.) Department B (Rs.)
Opening stock (at cost) 1,00,000 60,000
Purchase 4,60,000 3,40,000
Carriage inward. 10,000 10,000
Wages 60,000 40,000
sales (excluding inter-transfer) 7,00,000 5,60,000
Purchased goods transferred;
By B to A 50,000
By A to B 40,000
Finished goods transferred:
By B to A 1,75,000
By A to B 2,00,000
Return of finished goods:
By B to A 50,000
By A to B 35,000
Closing Stock:
Purchased goods 22,500 30,000
Finished goods 1,20,000 70,000

Purchased goods have been transferred at their respective departmental purchase cost and finished goods at
departmental market price. 20% of finished stock (closing) at each department represented finished goods received
from the other department.
(CA –Inter 1993-may)15 Marks

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Ans.: Departmental trading account

Particulars Deptt. A Deptt. B Particulars Dept. A Dept. B
To opening stock 1,00,000 60,000 By Sales 7,00,000 5,60,000
To purchases 4,60,000 3,40,000 By inter-Deptt. Transfer
To Inter-Deptt. Transfer: Purchased goods 40,000 50,000
Purchases goods 50,000 40,000 Finished goods 2,00,000 1 75,000
Finished goods 1,75,000 2,00,000 Less: Stock Reserve 50,000 35,000
Less: Returns 35,000 50,000 1,50,000 1,40,000
1,40,000 1,50,000 By Closing Stock
Purchased goods 22,500 30,000
To Carriage inward 10,000 10,000 Finished Goods 1,20,000 70,000
To Wages 60,000 40,000
To Gross Profit 2,12,500 2,10,000
10,32,000 8,50,000 10,32,000 8,50,000

(2) Deptt A Deptt B

Rs. Rs.
Rate of Gross profit
Sales (excluding inter-departmental transfers) 7,00,000 5,60,000
Inter-departmental transfer 1,50,000 1,40,000
8,50,000 7,00,000

Sales and Transfer 2,12,500 x 100 2,10,000 x100

8,50,000 7,00,000
= 25% = 30%

(3) Content Ratio Deptt. A Deptt B

Given in Question 20% 20%

(4) Stock Reserve

Deptt. A Closing Stock A x Content Ratio A x profit Ratio B
1,20, 000 x 20% x 30% =7,200
Deptt. B Closing Stock B x Content Ratio B x profit Ratio B
14,000,x 20% x 25% =3,500
(5) Gross profit of Deptt. A 2,12,000
Gross profit of Deptt B 2,10,000
4,22,500
Less: Stock Reserve 10,700
Consolidated Gross profit 4,11,800

Question:12 In the month of January, 1990 the 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
st
Stock on 1 January were:
Department A 120 units
Department B 80 units
Department C 152 units
The sales for the month were:
Department A 1,020 units at Rs. 20.00 each
Department B 1,920 units at Rs. 22.50 each
Department C 2,496 units at Rs. 25.00 each
The rate of Gross Profit is the same in each case. Prepare Departmental Trading Accounts.

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Answer. Departmental Trading Account for the ending on December 31-1-1989

Particulars A Dept. B Dept. C Dept. Total Particulars A Dept. B Dept. C Dept. Total
Rs. Rs. Rs. Rs.

To Stock 1,920 1,440 3,040 6,400 By Sales 20,400 43,200 62,400 1,26,000
To Purchase 16,000 36,000 48,000 1,00,000 By Stock 1,600 2,880 1,120 5,600
To Gross
Profit 4,080 8,640 12,480 25,200
Total 22,000 46,080 63,520 1,31,600 Total 22,000 46,080 63,520 1,31,600
In this case, it is assumed that the cost of goods was same in earlier year also as in the current year and so the
valuation of opening stock has made at same price.
Working Notes:
1Closing Stock of Deptt. A = Opening Stock + Purchase – Sales value of closing stock
= 120+1,000-3,020= 100 units 100 unit @ 16.00 = 1600
2 Closing Stock of Deptt. B = 80 + 2,000 - 1,920 = 160 units 160 unit @- 18.00 = 2880
3 Closing Stock of Deptt. C = 152 + 2,400 - 2,496 = 56 units 56 unit @. 20.00 = 1120

4 The rate of gross profit; Assuming all the purchase are sold, the sale-proceeds would be;

A 1,000 units @ Rs. 20.00 20,000

B 2,000 units @ Rs. 22.50 45,000
C 2,400 units @Rs. 25.00 60,000
Total Sales 1,25,000
Total Profit = Total Sales - Total Cost
= Rs. 1,25,000 - Rs. 1,00,000 = Rs.25,000
GROSS PROFIT RATIO WITH SALES = Rs.25,000/ 1,25,000 x 100-20%
For each article the profit and cost:
S. P. Profit (Rs.) Cost Rs (S. P-profit)
A Rs. 20.00 (20.00x20/100) 4.00 16.00
B Rs. 22.50 (22.50x20/100) 4.50 18.00

C Rs. 25.00 (25.00x20/100) 5.00 20.00

Question:13 Becket & Co Purchased goods for its three departments as follows:
Department: X 4,000 Units
Department: Y 9,000 Units Total Cost Rs.
Department: Z 4,000 Units 1,10,000
Sales of three departments were as follows:
Department: X 3,600,Units @ Rs. 7.50 per unit
Department: Y 9,800 Units @ Rs. 9.00 per unit
Department: Z 3,650 Units @ Rs. 13.50 per unit
Opening Stock as on 01-01-2002 was as follows:
Department: X 200 Units
Department: Y 1,400 Units
Department: Z 150 Units
st
Assuming that the gross profit ratio is uniform in all the three departments, prepare trading A/c for the year ended 31
December 2002. (CMA- INTER , IPCC Group 2)

Ans. Gross Profit X 9000 Y 29,400 Z 16,425

GP Ratio 33.33% as Sale

Question 14. A Ltd. has a factory which has two manufacturing departments X and Y. Part of the output of X
Department is transferred to Y Department for further processing and the balance is directly transferred to the Selling
Department. Inter-departmental stock transfers are made as follows:
X Department to Y Department of 33 1/3 % over-departmental cost.
X Department to Selling Department of 50% over-departmental cost.

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Y Department to Selling Department of 25% over-departmental cost.

The following information is given for the year ending 31st March, 1986:
Particulars Department X Department Y Selling Department

MT Rs. MT Rs. MT Rs.

Opening Stock 60 60,000 20 40,000 50 1,45,000
Raw Material Consumption 90 1,00,000 20 20,000 - -
Labour Charges - 50,000 - 80,000 -
Sales - - - - 5,00,000
Closing Stocks 30 - 50 - 60 -
Out of the total production in X Department, 30 MT were transfer to the Selling Department. Apart from these stocks
which were transferred during the year the balance output of X Department were for transfer to Y Department. The
per tonne material and labour consumption in X Department on production to be transferred directly to the Selling
Department is 300 per cent of the labour and material consumption on production meant for Y Department.
(i) Prepare Departmental Profit and Loss Account, and (ii) General Profit and Loss Account ignoring material wastages.
[CA Inter Nov., 1976 & Nov., 1981, adapted]

RECTIFICATION OF ERROR
QUESTION 15. Department X sells goods to Department Y at a profit of 25% on cost and to Department Z at 10% profit
on cost. Department Y sells goods to X and Z at a profit of 15% and 20% on sales, respectively. Department Z charges
20% and 25% profit on cost to Department X and Y respectively.
Department Managers are entitled to 10% commission on net profit subject to unrealized profit on Departmental sales
being eliminated. Departmental profits after charging Managers' commission, but before adjustment of unrealized
profit are as under:
Department X Rs. 36,000
Department Y Rs. 27,000
Department Z Rs. 18,000
Stock lying at different departments at the end of the year are as under:
Dept. X Rs. Dept. Y Rs. Dept. Z Rs.

Transfer from department X ......... 15,000 11,000

Transfer from department Y 14,000 …….. 12,000
Transfer from department Z 6,000 5,000 ……..

Find out the correct Departmental profits after charging managers’ commission.
(PE2, Nov 2001- 8 marks, (CMA Inter, IPCC Group 2))

Answer:
Calculation of correct Profit
Particulars Department X Department Y Rs. Department Z Rs.
Rs.
Profit after charging managers' commission 36,000 27,000 18,000
Add back : Managers' commission (I/9) 4,000 3,000 2,000
Profit before manager's commission 40,000 30,000 20,000
Less: Unrealized profit on stock
(working note) 4,000 4,500 25,500 2,000
Correct Profit before Manager's commission 36,000 2,550 18,000
Less : Commission for Department Manager @ 10% 3,600 1,800

Profit after manager commission 32,400 22,950 16,200

Working note:
Dept. X Rs. Dept. Y Rs. Dept. Z Rs. Total Rs.

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Unrealized profit of:

Department X Department …………….. 1 / 5 x 15,000 = 3,000 1 / 11 x 11,000 =1,000 4,000 4,500
Y Department Z 0.15 x 14,000 = 2,100 …………………… 0.20 x 12,000 = 2,400 2,000
1 76x6,000=1,000 I / 5 x 5,000 = 1,000 ……………………..

QUESTION 16. Booming Limited has three departments. They are Alpha, Beta and Gamma. The profit of these
departments are Rs. 30,000, Rs 40,000,and Rs. 17,400 respectively, (Before charging manager’s commission and
unrealized profit on stock transfers). Department Alpha transfers its goods @ 20% profit on cost to other departments
while Beta transfers its goods @ 10% profit on cost. Department Gamma transfers its goods at cost to other
departments. However, respective Deptt.’s original goods are only transferred.
On scrutiny of records you find,
(i) Purchases made for Alpha Deptt. Rs. 10,000 has been debited in Beta Dept. Account.
(ii) Goods sent on ‘sale or return basis’ by Beta Deptt. @ 120% ,have been recorded as regular Sale at Rs. 8,400
(iii) General expenses amounting to Rs. 2,100 have been excessively charged in Gamma Dept. instead of Beta Deptt.
(iv) The following transfers were made:
Deptt. Alpha To Beta 24,000 12,000 still in closing stock
To Gamma 3,600
Deptt. Beta To Gamma 11,000 4,400 still in closing stock
Deptt. Gamma To Alpha 7,700 3,000 still in closing stock

(v) Commission payable to the Manager @ 10% on correct overall Company profit after charging such commission.
Find correct Net profit of the Company and the commission payable to the General Manager.

Solution:
Alpha Beta Gamma
Profit 30,000 40,000 17,400
Rectification of Purchase (10,000) 10,000 —
Sale on Return
Sales — (8,400) —
Stock — 7,000 —
(8,400x100/120)
Expenses — (2,100) 2,100
Profits 20,000 46,500 19,500
Calculation of Stock Reserve
Stock of Ratio 12,000 x 1/6 = 2,000
Stock of Gamma 4,400 x 1/11 = 4,00
Stock of Alpha 3,000 x 0 0
2,400

Calculation of Co. Profit

Alpha 20,000
Beta 46,500
Gamma 19,500 86,000
2,400
(-) Closing Stock Reserve
83,600
Correct Profit 7,600
Commission (83,600 x 10/110) 76,000
Profit after Commission

Question:- 17 Department R sells goods to Department S at a profit of 25% on cost and Department T at 10% profit
on cost. Department S sells goods to R and T at a profit of 15% and 20% on sales respectively. Department T charges
20% and 25% profit on cost to Department R and S respectively.
Department Managers are entitled to 10% commission on net profit subject to unrealised profit on departmental sales
being eliminated. Departmental profits after charging Manager's commission, but before adjustment of unrealised
profit are as under

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Department R 54,000
Department S 40,500
Department T 27,000
Stock lying at different departments at the end of the year are as under:

Dept. R Dept. S Dept. T

Rs. Rs. Rs.
Transfer from Department R ----- 22,500 16,500
Transfer from Department S 21,000 ---- 18,000
Transfer from Department T 9,000 7,500 -----
Find out the correct departmental profits after charging Manager's commission
Answer:-
Particulars Departments
R S T
(Rs.) (Rs.) (Rs.)
Profit 54,000 40,500 27,000
Add: Managerial commission (1/9) 6,000 4,500 3.000
60,000 45,000 30,000
Less: Unrealised profit on stock (Refer W.N.) 6,000 6.750 3,000
54,000 38,250 27,000
Less: Managers' commission @ 10% 5,400 3,825 2,700
48,600 34,425 24,300

Working Notes:
Value of unrealized profit
Transfer by department R to
S department (22,500 x25/125) = 4,500
T department (16,500 x10/110) = 1,500 6,000
Transfer by department S to
R department (21,000 x 15/100) = 3,150
T department (18,000 x 20/100) = 3,600 6,750
Transfer by department T to
R department (9,000 x 20/120) = 1,500
S department (7,500 x 25/125) = 1,500 3,000

Question:- 18 Brahma Limited has three departments and submits the following information for the year ending on
st
31 March, 2011.
Particulars A B C Total (Rs.)
Purchases (units) 5,000 10,000 15,000
Purchases (Amount) 8,40,000
Sales (units) 5,200 9,800 15,300
Selling price (Rs. per unit) 40 45 50
Closing Stock (Units) 400 600 700
You are required to prepare departmental trading account of Brahma Limited assuming that the rate of profit on sales
is uniform in each case. ( CA-IPCC Exam)
Answer:
Departmental Trading Account for the year ended 31st March.2011
Particulars A Rs. B Rs. C Rs. Particulars A Rs. B Rs. C Rs.
To Opening Stock 14,400 10,800 30,000 By Sales 2,08,000 4,41,000 7,65,000
(W.N. 4) By Closing stock 9,600 16,200 21,000
To Purchases 1,20,000 2,70,000 4,50,000 (W.N.4)
(W.N. 2)
To Gross profit 83,200 1,76,400 3,06,000

2,17,600 4,57,200 7,86,000 2,17,600 4,57,200 7,86,000

Working Notes:
(1) Profit Margin Ratio
Rs.
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Department A (5,000 units x Rs. 40) 2,00,000

Department B (10,000 units x Rs. 45) 4,50,000
Department C (15,000 units x Rs. 50) 7,50.060
Total selling price of purchased units 14,00,000
Less: Purchases (8,40,000)
Gross profit 5,60.000
Profit Margin ratio = Gross Profit/ Selling price X 100 = 5, 60,000/14, 00,000 x 100 = 40%
Statement showing department-wise per unit cost and purchase cost
Particulars A B C
Selling price per unit (Rs.) 40 45 50
Less: Profit margin @ 40% (Rs.) (16) (18) (20)

Purchase price per unit (Rs.)

No. of units purchased 24 27 30
Purchases (purchase cost per unit x units 5,000 10,000 15,000
purchased) 1,20,000 2,70,000 4,50,000
(2) Statement showing calculation of department-wise Opening Stock (in units)
Particulars A B C
Sales (Units) 5200 9800 15300
Add: Closing Stock (Units) 400 600 700
5,600 10,400 16,000
Less: Purchases (Units) (5,000) (10,000) (15,000)
Opening Stock (Units) 600 400 1000
(3) Statement showing department-wise cost of Opening and Closing Stock
Particulars A B C
Cost of Opening Stock (Rs.) 600X24 400 X 27 1,000x30
14,400 10,800 30,000
Cost of Closing Stock (Rs.) 400X24 600X27 700x30
9,600 16,200 21,000

QUESTION 19. You are given the following particulars of a business having three departments:
Purchase Opening Stock Closing Stock
Deptt. A 1,500 units 200 units 100 units
Deptt. B 1,000 units 300 units 160 units
Deptt. C 2,000 units 150 units 200 units
Additional Information:
1) Purchases were made at a total cost of Rs. 1,84,000.
2) The percentage of gross profit on turnover is the same in each case.
3) Purchases and sales prices are constant for the last few years.
4) Selling price per unit Deptt. A Rs. 40
Deptt. B Rs. 50
Deptt. C Rs. 60
You are required to prepare Departmental Trading Accounts.
Hints:-
Computation of Sale proceeds of each Deptt.:
Opening stock + Purchases - Closing stock) x Selling Price
A 200+1,500-100 or 1,600 units @Rs. 40 = 64,000
B 300+1,000-160 or 1,140 units @Rs. 50 = 57,000
C 150 + 2,000-200 or 1,950 units @Rs. 60 = 1,17,000
2,38,000

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