Illustration :
X Ltd has two departments A and B. From the following particulars, prepare the Consolidated Trading Account and Departmental Trading Account for the year ending on 31st Dec, 2012
|
|
A |
B |
|
Opening Stock (at cost) |
20,000 |
12,000 |
|
Purchases |
92,000 |
68,000 |
|
Sales |
140,000 |
112,000 |
|
Wages |
12,000 |
8,000 |
|
Carriage |
2,000 |
2,000 |
|
Closing Stock:
|
4,500 24,000 |
6,000 14,000 |
|
Purchased goods transferred: · By B to A · By A to B |
10,000 |
8,000 |
|
Finished goods transferred: · By A to B · By B to A |
35,000 |
40,000 |
|
Return of Finished Goods: · By A to B · By B to A |
10,000 |
7,000 |
You are informed that purchased goods have been transferred mutually at their respective departmental purchase cost and finished goods at departmental market price and that 20% of the finished stock (Closing) at each department represented finished goods received from the other department.
Solution:
Departmental Trading Account
For the year ending on 31st Dec, 2012
|
Particulars |
Dept A |
Dept B |
Particulars |
Dept A |
Dept B |
|
To Stock |
20,000 |
12,000 |
By Sales |
140,000 |
112,000 |
|
To Purchases |
92,000 |
68,000 |
By purchased goods t/f to other Dept. |
8,000 |
10,000 |
|
To Wages |
12,000 |
8,000 |
By Finished goods t/f to other Dept. |
35,000 |
40,000 |
|
To Carriage |
2,000 |
2,000 |
By Return of Finished goods to other Dept. |
10,000 |
7,000 |
|
To Purchased Goods from other Dept. |
10,000 |
8,000 |
By closing stock: Purchased goods |
4,500 |
6,000 |
|
To Finished Goods t/f from other Dept. |
40,000 |
35,000 |
Finished goods out of t/f |
4,800 |
2,800 |
|
To Return of Finished goods from other Dept. |
7,000 |
10,000 |
Balance |
19,200 |
11,200 |
|
To Gross Profit |
38,500 |
46,000 |
|
|
|
|
|
221,500 |
189,000 |
|
221,500 |
189,000 |
Working Notes:
- Calculation of Net Sales (including transfers)
|
|
Dept A |
Dept B |
|
140,000 |
112,000 |
|
35,000 |
40,000 |
|
(7,000) |
(10,000) |
|
168,000 |
142,000 |
- Unrealised Profit on Closing Stock:
Dept A = 4,800 x (46,000/142,000) = Rs.1,555
Dept B = 2,800 x (38,500/168,000) = Rs. 642
In the above solution, highlighted font represents the calculations which are not understood by me. Request you to help me out incase if you know the logic behind the calculation of unrealized profit on closing stock and closing stock figures.
Thank You !
CAclubindia
