Monday, October 23, 2017

Departmental Accounts Solved Practical Problems

1.
DEPARTMENTAL ACCOUNTING
For the year ended 31st March, 2015
Particulars
A
Rs.
B
Rs.
Particulars
A
Rs.
B
Rs.
To Opening Stock
To Purchases
To Wages
To Carriage Inwards
To Gross Profit c/d
7,000
10,000
2,000
400
9,200
5,000
8,000
1,200
200
4,000
By Sales                     
By Sales Returns      
26,000
400

13,000
600





By Closing Stock
25,600
3,000
12,400
6,000

28,600
18,400

28,600
18,400
To Rent, Rates & Taxes
To General Exp.
To Salaries
To Net Profit
1,000
800
1,000
6,400
500
400
500
2,600
By Gross Profit b/d
9,200
4,000

9,200
4,000

9,200
4,000


2.
DEPARTMENTAL ACCOUNTING

Particular
A (T)
Rs.
B (R)
Rs.
C (S)
Rs.

A (T)
Rs.
B (R)
Rs.
C (S)
Rs.
To Purchases
To Gross Profit c/d
1,40,700
69,400
90,600
29,700
64,400
5,200
By Sales
By Closing Stock
1,50,000
60,100
1,00,000
20,300
25,000
44,600

2,10,100
1,20,300
69,600

2,10,100
1,20,500
69,600
To Salaries & Wages
To Rent
To Sundry Expenses
To Gross Profit c/d
12,000
2,400
6,000
49,000
24,000
2,400
4,000
-
12,000
6,000
1,000
-
By Gross Profit b/d

By Less Loss
69,400

29,700

700
5,200

13,800

69,400
30,400
19,000

69,400
30,400
19,000


Working Note:

3.
Working Note:
DEPARTMENTAL ACCOUNTING
Particular
A
Rs.
B
Rs.
Particular
A
Rs.
B
Rs.
To Opening Stock
To Purchases
To Return
15,200
75,100
1,100
10,800
69,800
800
By Sales
By Closing Stock
By Transfer
1,00,000
17,800
5,000
80,000
15,600
-

To Carriage Inwards
To Transfer
To Gross Profit c/d
74,000
1,480
-
32,120
69,000
1,380
5,000
9,420

3,80,000
1,65,000

1,22,800
95,600

1,22,800
95,600
To Salaries
To Salaries General (1 : 1)
To Rent & Rates (3 : 2)
To Advertisement
To General Exp. (5 : 4)
To Discount allowed
To Accountancy charges     (3 : 2)
To Net Profit C/d
9,000
5,800
3,600
4,500
3,000
1,000

300
5,660
8,500
5,800
2,400
3,600
2,400
800

200
By Gross Profit b/d
By Discount received





By Net Loss
32,120
740





-
9,420
690





13,590

32,860
23,700

32,860
23,700








GENERAL PROFIT & LOSS ACCOUNT

Rs.

Rs.
To Net Loss
A –  5,660
B – 13,590

To Insurance

7,930


1,000
By Net Loss
8,930

8,930

8,930



4. Calculation of Cost Permit:
Sales Price
Rs.
A = 5,000 x 40 =
B = 10,000 x 45 =
C = 15,000 x 50 =
2,00,000
4,50,000
7,50,000

Less: Cost of good
14,00,000
 8,40,000
G.P.
 5,60,000


Now, Cost Permits:


Calculation of O/S = Purchase = Sales + C/S – O/S
To Dept
Sales +
C/S – Purchase = O/S
A
B
C
5,200
9,800
15,300
400 – 5,000 = 600
600 – 10,000 = 400
700 – 15,000 = 1,000



TRADING ACCOUNT OF DEPARTMENT
For the year ended 31st December, 2014
Particulars
A
Rs.
B
Rs.
C
Rs.
Particulars
A
Rs.
B
Rs.
C
Rs.
To Opening Stock
To Purchase
To Gross Profit
14,400
1,20,000
83,200
10,800
2,70,000
1,76,400
30,000
4,50,000
3,06,000
By Sales
By Closing Stock
2,08,000
9,600
4,41,000
16,200
7,65,000
21,000

2,17,600
4,57,200
7,86,000

2,17,600
4,57,200
7,86,000


5.
Departmental Trading and Profit and Loss Account
Part.
A
B
C
D
E
Part.
A
B
C
D
E
To O/S
To Purchase
To G/P
10,000

1,00,000
9,000
6,000

60,000
4,000
15,000

20,000
8,000

52,000
9,000

60,000
2,000
By Sales
By C/S
By G/L

96,000
23,000

62,000
8,000

19,000
6,000
10,000

46,000
2,000
12,000

60,000
11,000

1,19,000
70,000
35,000
60,000
71,000

1,19,000
70,000
35,000
60,000
71,000
To G/L b/d
To S/C
To R/R
To Insurance
To M/E
To Net Profit


3,306
870

348
783

3,693


2,204
580

232
522

462

10,000
1,102
290

116
261


12,000
2,204
580

232
522


2,204
580

232
522
By G/P b/d




By Net Loss


9,000








4,000















11,769









15,538


2,000






1,538

9,000
4,000
11,769
15,538
3,538

9,000
4,000
11,769
15,538
3,538


Working Note:
Cost of goods sold = O/S + Purchase + D/Exp – C/S
Or Sales – G.P
Sales + G.L
COGS
A = 96,000 – 9,000 = 87,000
B = 62,000 – 4,000 = 58,000
C = 19,000 + 10,000 = 29,000
D = 46,000 + 12,000 = 58,000
E = 60,000 – 2,000 = 58,000
∴Ratio = 3 : 2 : 1 : 2 : 2
6.
DEPARTMENTAL ACCOUNTING
Particular
Toys
Rs.
Tins
Rs.
Particular
Toys
Rs.
Tins
Rs.
To Opening Stock
To R/M consumed
To Wages
To Transfer
To Store & consumed
To Gross Profit
5,000
-
3,000
2,000
500
13,500
15,000
36,000
6,000
-
8,500
38,500
By Sales
By Transfer
By Closing Stock
18,000
-
6,000
90,000
2,000
12,000

24,000
10,400

24,000
10,400
To Adv (1 : 5)
To Packing
To Office Exp.
To Depreciation:
Equipment
Building
To Net Profit
250
600
600

-
200
11,850
1,250
-
4,200

3,200
1,400
28,450
By Gross Profit
13,500
38,500

13,500
38,500

13,500
38,500



Illustration 8 Or 2016 Paper
Solution:
M/S Jorhat Traders Ltd.
DEPARTMENTAL TRADING & PROFIT AND LOSS ACCOUNT
For the year ended 31st March, 2015
Particular
A
Rs.
B
Rs.
Particular
A
Rs.
B
Rs.
To Opening Stock
To Purchases
Transfer
To Wages
To Gross Profit c/d
30,000
2,05,000
-
10,000
40,000
5,000
20,000
50,000
1,000
6,000
By Sales
By Inter-Departmental
Transfer
By Closing Stock
2,00,000

50,000
35,000
70,000

-
12,000

2,85,000
82,000

2,85,000
82,000
To Salaries
To Adm. & Selling Exp.
To Net Profit Transferred to General Profit & Loss A/c
3,600
12,000


24,400
2,400
2,000


1,600
By Gross Profit b/d
40,000
6,000

40,000
6,000

40,000
6,000
GENERAL PROFIT & LOSS ACCOUNT
For the year ended 31st March, 2015

Rs.

Rs.
To Stock Reserve (Closing)
To Net Profit transferred to Capital A/c
2,400

23,600
By Departmental N/P transferred from Dept. P/L A/c
A                            24,400
B                              1,600



26,000

26,000

26,000
Working Note:
Unrealized Profit
Unrealized Profit
O/S
C/S
Unsold Stock of Y
Rate of Profit changed by X
on cost

Now, Stock Reserve



Illustration 9 Or 1998 Paper
Solution:
M/S Lama Ltd.
DEPARTMENTAL TRADING & PROFIT & LOSS ACCOUNT
For the year ended 31st March, 2015
Particulars
Raja
Rs.
Rani
Rs.
Particulars
Raja
Rs.
Rani
Rs.
To Opening Stock
To Purchases
To Direct Wages
To Inter-departmental
Transfer
To Gross Profit c/d
45,000
1,80,000
20,000

-
45,000
15,000
30,000
10,000

40,000
15,000
By Sales
By Inter-Departmental
Transfer
By Closing Stock
2,10,000

40,000
40,000
90,000

-
20,000

2,90,000
1,10,000

2,90,000
1,10,000
To Interest
To Salaries & Wages
To Depreciation
To Administrative & Selling Expenses
To Net Profit transferred to General P/L A/c
3,000
7,500
4,500

9,000

21,000
1,000
2,500
1,500

3,000

7,000
By Gross Profit b/d
45,000
15,000

45,000
15,000

45,000
15,000


GENERAL PROFIT & LOSS ACCOUNT
For the year ended 31st March, 2015

Rs.

Rs.
To Provision for Unrealized Profit on Stock (1)
To Net Profit Transferred to Balance Sheet

3,000

25,000
By Departmental N/P transferred from Dept. P/L A/c
Raja                            21,000
Rani                              7,000



28,000

28,000

28,000



Working Note:
  1. Calculation on Unrealized Profit:
Rani Department’s entire Closing Stock of Rs. 20,000 represents goods transferred from Raja at cost plus 25%.
Profit included in the above closing stock 25/125 x Rs. 20,000 = Rs. 4,000

Rs.
Therefore, Closing Provision for Unrealized Profit Required will be
Less: Opening Provision for Unrealized Profit
4,000
1,000
Additional Provision Required
3,000


13
Solution:
DEPARTMENTAL TRADING AND PROFIT AND LOSS ACCOUNT
For the year ended 31st March, 2015
Particulars
Dept.
A
Rs.
Dept.
B
Rs.
Total
Particulars
Dept.
A
Rs.
Dept.
B
Rs.
Total
To Opening Stock
To Purchases
To Transfer from A Dept.
To Wages
To Gross Profit c/d
15,000
2,50,000

-
15,000
1,00,000
-
40,000

40,000
20,000
65,000
15,000
2,90,000

40,000
35,000
1,65,000
By Sales
By Transfer to B Dept.
By Closing Stock at Cost to Dept.
2,60,000
40,000

80,000
1,45,000
-

20,000
4,05,000
40,000

1,00,000

3,80,000
1,65,000
5,45,000

3,80,000
1,65,000
5,45,000
To Salaries (Dept.)
To Salaries General
To Printing & Stationery
To Advertisement
To Depreciation on Machinery
To Net Profit C/d
7,000
12,000

2,500
8,000

-
70,500
5,000
6,000

1,500
4,000

1,500
47,000
12,000
18,000

4,000
12,000

1,500
1,17,500
By Gross Profit b/d
1,00,000
65,000
1,65,000

1,00,000
65,000
1,65,000

1,00,000
65,000
1,65,000
To Provision for Unrealized Profit on Departmental Closing stock (see note)
To Balance transferred to Capital A/c








3,333

1,14,167
By Net Profit b/d


1,17,500



1,17,500



1,17,500


Working Note:
2011.
Working Note:

O/S
C/S
(i) Unsold Stock Furniture Dept
(ii) Rate of G.P (Sawmill)
(iii) Stock Reserve



Particulars
Sawmill
Rs.
Furniture
Rs.
Particulars
Sawmill
Rs.
Furniture
Rs.
To Opening Stock
To Purchases
To Transfer
To Wages
To Gross Profit c/d
1,50,000
10,00,000
-
-
2,00,000
25,000
7,500
1,50,000
30,000
42,500
By Sales
By Transfer
By Closing Stock
11,00,000
1,50,000
1,00,000
2,25,000

30,000

13,50,000
2,55,000

13,50,000
2,55,000
To Selling Expenses
To Net Profit
10,000
1,90,000
3,000
39,500
By Gross Profit b/d
2,00,000
42,500

2,00,000
42,500

2,00,000
42,500
GENERAL PROFIT & LOSS ACCOUNT
For the year ended 31st December, 2014

Rs.

Rs.
To General Exp.
To Stock Reserve (Closing)
To Net Profit Transferred to Capital
55,000
3,600
1,73,713
By Net Profit
Sawmill        = 1,90,000
Furniture     =    39,500

By Stock Reserve (Opening)


2,29,500

2,813

2,32,313

2,32,313

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