Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as at 31st December 2017.
Purchases: Department A 720,000
Department B 520,000
Rent and rates 50,000
Commission 55,000
Insurance 5,000
Sales: Department A 1,500,000
Department B 1,250,000
Discount received 124,000
Advertising 20,000
Salaries and wages 250,000
Depreciation 35,000
Administration and general expenses 50,000
Opening stock: Department A 150,000
Department B 100,000
CIosing stock: Department A 175,000
Department B 142,000
Additional information: Expenses are to be apportioned to the departments as follows
i. commission on the basis of sales:
ii. salaries and wages - 3:2 for Department A and B respectively
iii. discount received - 10% of purchases
iv. other expenses are to be apportioned equally.
You are required to prepare a Departmental Trading, Profit, and Loss Account for the year ended 31st December 2017.
Purchases: Department A 720,000
Department B 520,000
Rent and rates 50,000
Commission 55,000
Insurance 5,000
Sales: Department A 1,500,000
Department B 1,250,000
Discount received 124,000
Advertising 20,000
Salaries and wages 250,000
Depreciation 35,000
Administration and general expenses 50,000
Opening stock: Department A 150,000
Department B 100,000
CIosing stock: Department A 175,000
Department B 142,000
Additional information: Expenses are to be apportioned to the departments as follows
i. commission on the basis of sales:
ii. salaries and wages - 3:2 for Department A and B respectively
iii. discount received - 10% of purchases
iv. other expenses are to be apportioned equally.
You are required to prepare a Departmental Trading, Profit, and Loss Account for the year ended 31st December 2017.
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Correct Answer: Option
Explanation:
Department Trading, profit, and Loss account for the year ended 31st December 2017
Department Trading, profit, and Loss account for the year ended 31st December 2017
| Dept A | Dept B | Total | Dept A | Dept B | Total | ||
| N | N | N | N | N | N | ||
| Opening stockAdd: purchaseLess: closingGross profit c/d | 150,000720,000870,000175,000695,000805,0001,500,000 | 100,000520,000620,000142,000478,000772,0001,250,000 | 250,0001,240,0001,490,000317,0001,173,0001,577,0002,750,000 | Sales | 1,500,0001,500,000 | 1,250,0001,250,000 | 2,750,0002,750,000 |
| Less: expensesRent & ratesCommissionInsuranceAdvertisingSal. & wagesDepreciationAdmin & gen exp.Net profit | 25,00030,000250010,000150,00017,50025,000617,000 | 25,00025,000250010,000100,00017,50025,000619,000 | 50,00055,0005,00020,000250,00035,00050,000236,000 | Gross prft b/dDisc. recd. | 805,00072,000 877,000nm | 772,00052,000 824,000nm | 1,577,000124,000 1,701,000nm |