Financial Accounting II Chapter 6 – Departmental Accounts 2nd Sem B.

Com
1. State the basis o apportionment of the following expenses in the case of Departmental Accounting
a. Rent
b. Carriage inwards
c. Carriage outwards
d. Discount received
e. General lighting
2. Distribute the following expenses to the departments of a business on an appropriate basis

Particulars Rs
Advertisement Expenses 25,000
Rent 12,000
Electric lighting charges 7,000
Salaries paid 2,00,000
Depreciation 9000

Particulars A B C
Sales 10,00,000 10,00,000 5,00,000
Floor area in Sq mts 600 400 200
No of light points 10 15 10
Value of assets 9 6 5

3. From the following Trail Balance prepare Departmental Trading and Profit and loss account
Particulars Debit Credit
Stock on 1.4.2015 Dept A 33,000
Stock on 1.4.2015 Dept B 22,000
Purchases Dept A 55,000
Purchases Dept B 44,000
Sales Dept A 1,08,000
Sales Dept B 96,000
Wages 9,000
Salaries 3,400
Debtors 37,600
Total 2,04,000 2,04,000
Closing Stock on 31.3.2016
Department A - 23,000
Department B – 13,000
Basis of Apportionment:
a. Wages on the basis of purchases b. Salaries on the basis of Sales

4. A firm has two departments A and B. During the trading period ending 31.3.2016 the required figures were as
follows
Particulars Dept A Dept B Total
Opening stock 5,000 7,000 12,000
Purchases 42,000 52,000 94,000
Sales 80,000 93,000 1,73,000
Purchase return 2,000 2,000 4,000
Sales return 2,000 2,000 4,000
Closing stock 6,000 8,000 14,000
Wages 5,000 6,000 11,000
Carriage inwards 4,500
Discount received 1,800
Carriage outwards 1,300
Devaki Prasad H, Ananya Institute of Commerce and Management Page 1
Financial Accounting II Chapter 6 – Departmental Accounts 2nd Sem B.Com

Salaries 10,000 13,000 23,000

General salaries 5,000
Discount allowed 1,300
Sundry expenses 2,600
Prepare Trading and Profit and Loss Account in tabular form assuming that
 Rent, Rates and Taxes are pertaining to business premises which are occupied by the two department
equally
 Depreciate Machinery at 10% p.a which cost Rs.60,000
 The machinery is used by the two departments in the ratio of 2:1

5. From the following information find out the purchases of each department
Dept No o pieces
X 200
Y 1,400
Z 400
All the pieces were sold by each department at the following prices
Dept X at Rs.15 per piece: Dept Z Rs.6 per piece: Dept Y at Rs18 per piece

6. The following purchases were made by Goodluck co ltd having three departments
Dept A : 1,500 units
Dept B:2,500 units at a Total Cost of Rs.1,18,000
Dept C : 3,000 units
Stock on 1.4.2015 Sales during the year 2015-16
Dept A : 150 units Dept A : 1,400 units at Rs.18 each
Dept B :200 units Dept B : 2,400 units at Rs.24 each
Dept C:250 units Dept C : 2,700 units at Rs.30 each
The rate of gross profit is the same in each department . You are required to calculate the amount o
closing stock in each department.

7. XYZ ltd has three departments P,Q and R . From the following information calculate the amount of closing stock
in each department.
Department Closing stock Selling price per unit
P 800 18
Q 900 24
R 1000 30
The rate of gross profit in each department is uniform i.e 33.33 % on sales
8. The following purchase were made by a Business House having three department in 2016-17
Department A 1000 units At a total cost o Rs.1,00,000
Department B 2000 units
Department C` 2400 units
st
Stock on 1 April 2015 Sales during the year 2015-16
Department A 120 units Department A 1020 units 20
Department B 80 units Department B 1920 units 22.50
Department C` 152 units Department C 2496 units 25

The rate of gross profit is the same in each case

Prepare the Departmental Trading Account

Devaki Prasad H, Ananya Institute of Commerce and Management Page 2

Financial Accounting II Chapter 6 – Departmental Accounts 2nd Sem B.Com
st
9. The following particulars are taken from the books o Mr.Jeevan for the year ending 31 March 2016
Particulars Department A Department B Department C
Purchases 2,00,000 3,00,000 8,00,000
Returns outwards 20,000 10,000 30,000
Sales 6,10,000 12,20,000 18,30,000
Returns inwards 10,000 20,000 30,000
Wages 40,000 60,000 80,000
Stock on 1.4.2015 50,000 70,000 10,000
Inter Departmental transfer 80,000 50,000 40,000
From Depart A to B and C - 10,000 20,000
From Depart B to A and C 5,000 - 10,000
From Depart C to A and B 7,000 9,000 -
Other information
 The following expenses are to be allocated equally insurance Rs.6,000 , office expenses Rs.12,000 and
salaries Rs.45,000
 Rent of the premises of Rs.36,000 is to be divided as to A – ¼, B – ¼ and C – ½
 Other expenses were : Discount allowed Rs.18,000, Bad debts Rs.15,000, legal expenses and income tax
Rs.24,000 and Rs.64,000 respectively. Legal expenses and in come tax cannot conveniently allocated
Prepare the departmental trading and profit and loss account in columnar form and a general profit and loss
account.

10. A super market carries on its business through five departments A,B,C,D and E
a. The following information for the year 2014-15 is now made available to you
Salaries 18,000
Rent rates and taxes 4500
Insurance 2700
Miscellaneous Expenses 5400
All the expenses are chargeable to each department in proportion to the cost of goods sold in the
respective departments
b. The following balance as at 31st march 2015 were ascertained
A B C D E
Opening stock 15,000 9,000 22,500 12,000 13,500
Purchases 1,08,000 90,000 30,000 78,000 90,000
Sales 1,44,000 93,000 45,500 96,000 1,01,000
Closing stock 36,000 12,000 9,000 3,000 16,500
Prepare the profit and loss account

11. A firm has two departments A and B. During the trading period ending 31.3.2015 the requisite figures were as
follows

Particulars Department A Department B

Opening stock 5,000 8,000
Purchases 20,000 16,000
Sales 45,000 30,000
Wages 3,000 2,000
Closing stock 12,000 10,000
Other expenses Total
Office salaries 24,000

Devaki Prasad H, Ananya Institute of Commerce and Management Page 3

Financial Accounting II Chapter 6 – Departmental Accounts 2nd Sem B.Com
Rent 1600
Discount allowed 4500
Discount earned 1440
Office staff appointed 10 persons in Department A and 5 persons in Dept B. Area occupied 100 sq.ft by Dept A
and 60 sq.ft by Dept B

12. From the following information prepare Departmental Trading and profit and loss account of a firm of dress
makers.
Particulars Amount Amount
Stock on 1.1.2014
Mens wear 17400
Ladies wear 14700
Purchases
Men’s wear 35,000
Ladies wear 30,000
Sales
Mens wear 60,000
Ladies wear 40,000
Wages
Men’s wear 8200
Ladies wear 2,700
Rent taxes and insurance 9390
Sundries 3600
Salaries 3000
Lighting 2100
Discount 2220 650
Adverting 3680
Carriage 2340

 Rent and insurance, sundries, lighting , salaries and carriage are to be apportioned in the ratio 2:1
 Advertising to be divided equally
 Discounts to be allocated on the basis of sales and purchases
 The stock on 31st December 2014 was
o Men’s wear 16,740
o Ladies wear 12,050

Devaki Prasad H, Ananya Institute of Commerce and Management Page 4