Department accounts

IPCC 822 views 3 replies

hello friends. please solve the department question given below. as i am unable to solve it.

Q-

The following purchases were made during the year 2004 by a business house having three departments.

Department A  : 1,000 units

Department B : 2,000 units

Department C : 2,400 units

At total cost of Rs. 1,00,000


Stock on 1st january 2004 were:

Department A : 120 units

Department B : 80 uniits

Department C : 152 units


The sales during the year were:

Department A : 1020 units @ Rs. 20 each

Department B : 1920 units @ Rs. 22.50 each

Department C : 2496 units @ Rs. 25 each


The rate of gross profit is same in each case. Prepare departmental trading account for the year 2004.

please reply soon.

thanks.

Replies (3)

The Cost Price in Depatment in A,B&c is 16,18&20 respectively and gross profit margin is 25%.With this you can prepare Departmental Trading P&L a/c

sir we will charge opening and closing stock at cost price ?

Yes...
 


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