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Working Note :, Sales Ratio:, A, :, rie, B, 8.00,000, 6.00.000, :, ie. 3:4, lustration 3), Rational Departmental Stores has prepared the following Trading and Profit and Loss Account for, he year ended 31st March, 2014., Particulars, Particulars, To Opening Stock, Dept. : H, Dept. : M, Dept. : T, To Purchases, By Sales, Dept. : H, Dept. : M, Dept. : T, By Closing Stock, Dept. : H, Dept. : M, Dept. : T, 45,000, 3.02,600, 60,000, 4,53,900, 27,800, 1,51,300, Dept.: H, Dept.: M, Dept.: T, 2,24.000, 3,55,000, 1,54,000, 35,000, 64,000, 75,000, Scanned By Scanner Go

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Dr.he Departmental Trading and Profit & Loss Account for the year ending 31-3-2014, d) All other expenses except those mentioned in item (a) to (c) above, be allocated in the ratio of, 258, Accountancy and Financial Management (F.Y.B.Com.: SEM-I), To Salaries, 60,000, To Rent/Taxes, To Discount, To Advertisement, To Trade Expenses, To Depreciation, To Electricity, To Carriage Outward, To Net Profit, 45,000, 12,000, 34,500, 9,000, 15.000, 18,300, 6,600, 15,600, 10.81.800, 10,81,800, Prepare Departmental Trading and Profit and Loss Account for the year ended 31st March, 2014, after considering the following data :-, a) Bent/Taxes to be allocated in the ratio of area occupied which was 1:2:1 respectively., b) Depreciation to be charged equally., c) Of the 2 salesmen employed, one worked in Dept. M alone. The other works in Dept. H and T., His salary be allocated equally between Dept. H and T. Salary of each salesman is 2.500 p.m, sales of the respective departments., Solution :, Cr., Scanned By Scanner Go

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(1) Salaries :1 salesman works for Dept. M alone. His salary 2,500 x 12 = 30,000 will be debited, 68,600 1,02,900 44,650 2.16,150, To Electricity, To Carriage, outward, Sales, 6,100, 9.150, 3,050 18.300, Sales, 2,200, 3,300, 1,100, 6,600, To Net Profit, 10,550, 5.200, 15,750, 68,600 1.02.900, 44,650 2,16,150, Working Notes :, to Dept. M alone. Other salesman works for Dept. H & T equally. So his salary ? 30,000 will be, divided equally between Dept. H & T., (2) Sales Ratio :, H :, М:, :: 3,02,600: 4,53,900 : 1,51,300 :: 2 : 3: 1ferd, (3) Utility of Dept. A/c : This illustration brings out the importance of preparing Departmental Final, Accounts. It is only from the Departmental P & L A/c that the owners can realise that Dept. Tis, making losses. The General P & L A/c fails to indicate this important fact., Illustration 4, Prepare Department Trading and Profit and Loss Account for two departments, viz. Chairs Department, and Dolls Department for the year ended 31st March, 2014 :, Particulars, Opening Stock :, Chairs, 75,000, 25,000, Dolls, Raw Materials consumed:, Dolls plus Chairs, 1,80,000, Scanned By Scanner Go, : :

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Departmental Accounts, 259, Stores Consumed, Wages :, Dolls, Chairs, 45,000, 15,000, 30,000, 7,500, 3,000, 24,000, Advertisement, Packing Expenses (Dolls), Office Expenses, Depreciation :, On Factory Equipment, On Building, Sales :, Chairs, 16,000, 8,000, Dolls, 4,50,000, 90,000, Closing Stock :, Chairs, Dolls, 60,000, 30,000,, Given that :, 1. Doll making does not require any equipment., 2. Only 1/8th of building is occupied by Dolls Department., 3. Divide office expenses in the ratio of 5:1 between Chairs and Dolls Department respectively., 4. Value of raw material used by Dolls Department is 10,000., 5. Divide stores consumed on the basis of raw materials used., onixet 1etle, eoibsA (), onsise (S), eiT (C), inaewted, 6. Advertisement expenses be allocated appropriately., Solution :, (Apr. 08, adapted), noduloe, Dr. Departmental Trading and Profit and Loss Account for the vear ended 21, Scanned By Scanner Go, :: : :, : :: :, ::::, : :

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260, Accountancy and Financial Management (F.Y.B.Com.: SEM-), Illustration 5, Trading and Profit and Loss Account of G.E. Radio and Gramophone Equipment Co. for the six, months ended 31-3-2014 is presented to you in the following form :, ailog, Particulars, Particulars, Purchases :, Sales :, - Radios (A), - Gramophones (B), - Spare Parts (C), Salaries and Wages, 1,40,700, 90,600, 64,400, 48,000 Stock (Closing), - Radios (A), Gramophones (B), Receipts from Spare Parts (C), 1,50,000, 1,00,000, 25,000, Rent, - Radios (A), Sundry Expenses, Profit, 10,800, 11,000 - Gramophones (B), 34,500 - Spare Parts (C), 60,100, 20,300, 44,600, Total, 4,00,000 Total, 4,00,000, Prepare Departmental Accounts for each of the three departments A, B and C mentioned above, after taking into consideration the following information :, (1) Radios and Gramophones are sold at the show-room, spare parts are sold at the workshop., (2) Salaries and wages comprise as follows : Showroom 3/4, Workshop 1/4, It was decided to, allocate the show-room salaries and wages in the ratio of 1:2 between the Departments A and B., (3) The workshop rent is ? 1,000 per month. The rent of the showroom is to be divided equaly, between the departments A and B., (4) Sundry Expenses are to be allocated on the basis of the turnover of each department., Solution :, Departmental Trading and Profit & Loss ACcount for the period ended 31-3-2014, Cr., Dr., Spare, Total, Particulars, Total, Radio, Gramo-, Radio, Gramo-, Spare, Particulars, phones, Parts, phones, Parts, Scanned By Scanner Go