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Department - 3

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55 views

Department - 3

Uploaded by

pratik.kotecha
Copyright
© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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urniture & Fittings 3,000

Sundry Creditors 4,500 47,920 Less: Depreciation


18.600 for the year
Stock in Trade 300 2,700
28,790
Sundry Debtors 6.060
Cash at Bank 9,900
Cash in Hand 170 10.070
66,520
86,520
6. INTER DEPT. TRANSFERS AT SELLING PRICE
6.1 DEPT. & GENERAL P & LA/C
llustration 23: (Transfer at Cost + 25%)
From the following data, prepare Departmental Trading and Profit and Loss
the combined Income Account revealingthe concern's true result for the Account and thereafter
year ended 31st December
2013:

Particulars Departrments
A B
Stock (January 1) 40,000
Purchases from outside
2,00,000 20,000
Wages
Transfer of Goods from Department A
10,000 1,000
50,000
Stock (Dec. 31) at cost to the Department 30,000 10,000
Sales to outsiders 2,00,000 71,000
R' entire stock represents goods from Department A which transfers them at 25% above its cost.
Administrative and selling expenses amount to ? 15,000 which are to be allocated between
departments Aand B in the ratio of 4:1respectively.
O.2 FINAL ACCOUNTS

llustration24 : (Advanced)
Macgreen and Co. has two departments A and B. Al goods purchased by B' departmet from 'A'
department are transferred at normal market prices, From the following information prepare Trading
and Profit and Loss A/c of the two departments for the year ended31st Decermber, 2017 and the
Balance Sheet as on 31-12-2017.
Particuars (Dept. B(O Total ()
|Dept. A
Opening Stock 10,000 10,000
Purchases 1,10,000 5,000 1,15,000
Goods from Department A 30,000 30.000
Wages 300 3,200 3.500
Salaries 2,400 600 3.000
Closing Stock at Cost 18,000 6,000 24.000
Sales 1.21,000 68.000 1.89.000
Printing and Stationery 500 300 800
Advertisement 5,000
General Expenses 9,000
Capital 60,000
Debtors 27,000
Creditors 4.000
Machinery 6.000 6,000
50,000
Drawings 23,700
Cash in Hand
those issued from
Depreciate machinery by 10%.The entire stock of the Department B represents
A. The general expenses are to be apportioned in the ratio of 3:2 between A and
the Department and 6,000 respectively, but the stock
B.The closingstocks of A and B Departments were ? 18,000
Department A.
Department B was entirely from goods transferred from

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