Mr X runs a business which has two department. The following balance were extracted from his books on 30.6.2020:Items Dept A Dept B Common expenses RsOpening stock on 1.1.2020 12000 13000 Commission payable 1500Purchases 24520 36544 Salaries 15100Sales 86030 89070 Advertising 2500Closing stock 12100 13300 Rates 1450Wages 22800 21200 Insurance 400Return in 1030 4070 Repairs 800Return out 520 544 Lighting heating 2000 Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid. Commission, salaries and advertising are to be charged to the departments in proportion on net(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and 3/4th to the department B. You are required to prepare departmental trading account. QUESTION NO.8 Mr X runs a business which has two department. The following balancewere extracted from his books on 30.6.2020:ItemsDept ADept BCommonRsexpensesCommissionOpening stock on 120001.1.2020PurchasesSales130001500payableSalariesAdvertising15100250024520365448907086030Closing stockWagesReturn inReturn out1210013300Rates1450InsuranceRepairsLighting heating2280021200400103040708005205442000Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid.Commission, salaries and advertising are to be charged to the departments in proportion onnet(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and3/4th to the department B. You are required to prepare departmental trading account.

The trading account of a company shows all the primary income and expenses of a trader and help in…

Answered: Items Dept A Dept B Common Rs expenses…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mr X runs a business which has two department. The following balance were extracted from his books on 30.6.2020: Items Dept A Dept B Common expenses Rs Opening stock on 1.1.2020 12000 13000 Commission payable 1500 Purchases 24520 36544 Salaries 15100 Sales 86030 89070 Advertising 2500 Closing stock 12100 13300 Rates 1450 Wages 22800 21200 Insurance 400 Return in 1030 4070 Repairs 800 Return out 520 544 Lighting heating 2000 Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid. Commission, salaries and advertising are to be charged to the departments in proportion on net(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and 3/4th to the department B. You are required to prepare departmental trading account.

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