Professional Documents
Culture Documents
DEPARTMENTAL ACCOUNTS
Q6:
You are given the following particulars ofa business having three departments:
Department Purchases Opening Stock Closing Stock
A 1,500 units 200 units 100 units
B 1,000 units 300 units 160 units
C 2,000 units 150 units 200 units
Additional Information:
(i) Purchases were made at a total cost of Rs. 92,000.
(ii) The percentage of gross profit on turnover is the same in each case.
(iii) Purchases and Sales prices are constant for the last 2 years
(iv) Selling price per unit:
Department Rs.
A 20
B 25
C 30
You are required to prepare Department Trading Account.
(Answer: Purchases A-24,000 B- 20,000 C-48,000)
Solution:
22
D-FORTUNE CLASSES
Q7:
FGH Ltd. has three departments I, J and K. Following information is provided for the year
ended 31.03.2011:
Particulars I J K
Opening Stock 5,000 8,000 19,000
Opening reserve for - 2,000 3,000
unrealized profit
Materials consumed 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 1,000
No. of Employees 30 20 10
Stocks of each department are valued at department concerned. Stocks of I are
transferred to J at cost plus 20% and stocks 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 and Rs.
6,000. Prepare Departmental Trading and Profit & Loss A/c for the year ending
31.03.2011.
Answer:
23
D-FORTUNE CLASSES
Q8:
The following balances were extracted from the books of „Shaitaan‟ Ltd. You are required
to prepare Departmental Trading and Profit and Loss Account for the year ended 31
March, 2010 after adjusting unrealized profits if any.
Department X Department Y
24
D-FORTUNE CLASSES
(Answer: Stock Reserves- Dep X- 5,000 &Dep Y- 6,000 and Total Net Profit- Rs.
10,14,000)
25