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:
- 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
|