Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a ltd. has two departments p and q. department p s

A Ltd. has two departments P and Q. Department P sells goods to department Q...

70.2K

Verified Solution

Question

Accounting

image

A Ltd. has two departments P and Q. Department P sells goods to department Q at normal selling price. From the following particulars prepare Departmental Trading and Profit and Loss Account for the year ended on 31.12.2017 and also ascertain the net profit to be included in the Balance Sheet. Particulars Opening stock Purchases Dept. P) 5,00,000 28,00,000 - Goods from department P Wages Travelling expenses Closing stock at cost to the department Sales Printing and stationery Dept. Q() Nil 3,00,000 8,00,000 2,00,000 1,60,000 2,09,000 3,50,000 20,000 8,00,000 30,00,000 30,000 20,00,000 25,000 The following expenses incurred for both the departments were not apportioned between the departments: (a) Salaries 3,30,000. (b) Advertisement expenses 1,20,000. (c) General expenses 5,00,000. (d) Depreciation is to be charged @ 30% on the machinery value of 596,000. The advertisement expenses of the departments are to be apportioned in the turnover ratio. Salaries and depreciation apportioned in the ratio of 2:1 and 1:3 respectively. General expenses are to be apportioned in the ratio of 3:1

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students