M/s Bright and Co. Had four departments A,B,C and D. Each department being managed by a departmental manager whose commission was 10% of the respective departmental profits, subject to a minimum of $6,000 in each case. Inter departmental transfers took place at a loaded price as follows : From Department A to Department B 10% above cost A to D 20% D 20% C to C to B 20% For the year ended 31st March, 2015 the firm had already prepared and closed the departmental Trading and Profit & Loss Account. Subsequently it was discovered that the closing stocks of departments had included interdepartmentally transferred goods at loaded price of cost price. From the following information prepare a statement recomputing the departmental profit or loss : Deptt. A Deptt. B Deptt. C Deptt. D 50,400 (Profit) ( $22,000 from Deptt. A and $48,000 from Deptt. C) 1,08,000 (Profit) ($3,600 from Deptt. C and $1,200 from Deptt. A) 38,000 (Loss) 72,000 (Profit) Final Profit/Loss Interdepartmental transfers included at loaded price in the departmental Stock
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![M/s Bright and Co. Had four departments A,B,C and D. Each department being managed by a
departmental manager whose commission was 10% of the respective departmental profits,
subject to a minimum of $ 6,000 in each case. Inter departmental transfers took place at a loaded price as
follows :
10% above cost
20%
20%
В 20%
For the year ended 31st March, 2015 the firm had already prepared and closed the departmental
Trading and Profit & Loss Account. Subsequently it was discovered that the closing stocks of departments
had included interdepartmentally transferred goods at loaded price of cost price. From the following
From Department A to Department
A to
C to
C to
В
D
D
information prepare a statement recomputing the departmental profit or loss
Deptt. A
2$
38,000
(Loss)
Deptt. B
Deptt. C
Deptt. D
50,400
(Profit)
( $22,000 from
Deptt. A and
$48,000 from
Deptt. C)
1,08,000
(Profit)
Final Profit/Loss
72,000
(Profit)
Interdepartmental transfers
included at loaded price
in the departmental Stock
( $3,600 from
Deptt. C and
$1,200 from
Deptt. A)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7bf7f2dd-79b2-4a37-bf55-c79244ab7323%2Fce01e60a-68aa-4fb3-bb90-3bd30a506548%2F8vwhf1w_processed.jpeg&w=3840&q=75)
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