Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as at 31st December 2017.
Purchases: Department A 720,000
Department B 520,000
Rent and rates 50,000
Commission 55,000
Insurance 5,000
Sales: Department A 1,500,000
Department B 1,250,000
Discount received 124,000
Advertising 20,000
Salaries and wages 250,000
Depreciation 35,000
Administration and general expenses 50,000
Opening stock: Department A 150,000
Department B 100,000
CIosing stock: Department A 175,000
Department B 142,000
Additional information: Expenses are to be apportioned to the departments as follows
i. commission on the basis of sales:
ii. salaries and wages - 3:2 for Department A and B respectively
iii. discount received - 10% of purchases
iv. other expenses are to be apportioned equally.
You are required to prepare a Departmental Trading, Profit, and Loss Account for the year ended 31st December 2017.
Department Trading, profit, and Loss account for the year ended 31st December 2017
| Dept A | Dept B | Total | Dept A | Dept B | Total | ||
| N | N | N | N | N | N | ||
| Opening stock Add: purchase Less: closing Gross profit c/d |
150,000 720,000 870,000 175,000 695,000 805,000 1,500,000 |
100,000 520,000 620,000 142,000 478,000 772,000 1,250,000 |
250,000 1,240,000 1,490,000 317,000 1,173,000 1,577,000 2,750,000 |
Sales |
1,500,000 1,500,000 |
1,250,000 1,250,000 |
2,750,000 2,750,000 |
| Less: expenses Rent & rates Commission Insurance Advertising Sal. & wages Depreciation Admin & gen exp. Net profit |
25,000 30,000 2500 10,000 150,000 17,500 25,000 617,000 |
25,000 25,000 2500 10,000 100,000 17,500 25,000 619,000 |
50,000 55,000 5,000 20,000 250,000 35,000 50,000 236,000 |
Gross prft b/d Disc. recd. |
805,000 877,000nm |
772,000
|
1,577,000
|
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