{"id":25579,"date":"2023-06-05T17:10:27","date_gmt":"2023-06-05T11:40:27","guid":{"rendered":"https:\/\/gstguntur.com\/?p=25579"},"modified":"2023-06-05T17:10:27","modified_gmt":"2023-06-05T11:40:27","slug":"departmental-accounts-ca-inter-accounts-question-bank","status":"publish","type":"post","link":"https:\/\/gstguntur.com\/departmental-accounts-ca-inter-accounts-question-bank\/","title":{"rendered":"Departmental Accounts – CA Inter Accounts Question Bank"},"content":{"rendered":"

Departmental Accounts \u2013 CA Inter Accounts Question Bank<\/a> is designed strictly as per the latest syllabus and exam pattern.<\/p>\n

Departmental Accounts – CA Inter Accounts Question Bank<\/h2>\n

Question 1.
\nBasis of aNocation of common expenditure among different departments. (Nov 1998, 4 marks)
\nAnswer:
\nBasis of allocation of common expenditure among different departments:
\nAt the time of preparing department accounts, expenses should be distributed among the different departments on the basis of the following principles:
\n1. Expenses incurred specially for each department are charged directly to it. For example, insurance charges of stock held by a department.<\/p>\n

2. The expenses which are not capable of correct measurement are dealt in the following ways:
\n(i) Expenses incurred on selling.are charged on the basis of sales for e.g. discount, bad debts. selling commission etc.
\n(ii) Administrative and other expenses such as salaries of managers, directors, common advertisement expenses, depreciation on assets etc. are allocated equally among all the caepartmerts that have benefitted thereby. Alternatively, no allocation may be made and such expenses may be charged to the combined profit and loss account.<\/p>\n

3. Common expenses, the advantages of which is shared by all the departments and which are competent enough of precise allocation (e.g. rent, lighting expenses etc.) are distributed among the departments related on some particular basis which are considered suitable for the circumstances. Rent are charged to different departments as per the floor area occupied by each department. Lighting and heating expenses are distributed on the basis of consumption of energy by every department and so on.<\/p>\n

Question 2.
\nState the basis on which the following common expenses, the benefit of which is shared by all the departments is distributed among the departments:
\n(i) Rent, rates and taxes, Insurance of building;
\n(ii) Selling expenses such as discount, bad debts, selling commission, and other such selling expenses:
\n(iii) Carriage Inward;
\n(iv) Depreciation;
\n(v) Interest on loan;
\n(vi) Profit or loss on sale of investment;
\n(vii) Wages;
\n(viii) Lighting and Heating Expenses (Nov 2013, 4 marks)
\nAnswer:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Expenses<\/td>\nBasis<\/td>\n<\/tr>\n
(i) Rent, rates & taxes, insurance of building<\/td>\nFloor area occupied by each department (It given) otherwise on time basis.<\/td>\n<\/tr>\n
(ii) Selling expenses such as discount, bad debts etc.<\/td>\nSales of each department.<\/td>\n<\/tr>\n
(iii) Carriage Inward<\/td>\nPurchase of each department.<\/td>\n<\/tr>\n
(iv) Depreciation<\/td>\nValue of assets of each department or time basis.<\/td>\n<\/tr>\n
(v) Interest on loan<\/td>\nUtilisation of loan amount in each department (if identifiable) otherwise in combined P&L A\/c.<\/td>\n<\/tr>\n
(vi) Profit or loss on sale of investment<\/td>\nEqual or shown in general P&L A\/c.<\/td>\n<\/tr>\n
(Vii) Wages<\/td>\nTime devoted to each department.<\/td>\n<\/tr>\n
(viii) Lighting & Heating expenses<\/td>\nConsumption of energy by each department.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Question 3.
\nGive the basis of allocation of the following common expenditure among Different departments:
\n(i) Insurance of Building
\n(ii) Discount and bad debts
\n(iii) Discount received
\n(iv) Repairs and maintenance of capital assets
\n(v) Advertisement expenses
\n(vi) Labour welfare expenses
\n(vii) PFFESI contributions
\n(viii) Carnage Inward (May 2016, 4 marks)
\nAnswer:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Item<\/td>\nBasis<\/td>\n<\/tr>\n
(i) Insurance of Building<\/td>\nFloor area of each department<\/td>\n<\/tr>\n
(ii) Discount and bad debts<\/td>\nSales of each department<\/td>\n<\/tr>\n
(iii) Discount received<\/td>\nPurchases of each department<\/td>\n<\/tr>\n
(iv) Repairs and maintenance of capital assets<\/td>\nAssets value of each department<\/td>\n<\/tr>\n
(v) Advertisement expenses<\/td>\nSales of each department<\/td>\n<\/tr>\n
(vi) Labour welfare expenses<\/td>\nNo. of employees in each dept.<\/td>\n<\/tr>\n
(vii) PF\/ESI contributions<\/td>\nWages and Salaries of each department<\/td>\n<\/tr>\n
(viii) Carriage inward<\/td>\nPurchases of each department<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\"Departmental<\/p>\n

Question 4.
\nDepartment X sells goods to Department Y at a profit of 25% on cost and to Department Z at 10% profit on cost. Department Y sells goods to X and Z at a profit of 15% and 20% on sales, respectively. Department Z charges 20% and 25% profit on cost to Departments X and Y, respectively. Department Managers are entitled to 10% commission on net profit subject to unrealised profit on departmental sales being eliminated. Departmental profits after charging Managers commission, but before adjustment of unrealised profit are as under:
\n\"Departmental
\n(Nov 2001, 8 Marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 5.
\nGoods are transferred from Department P to Department O at a price 50% above cost. If dosing stock of Department Q is \u20b9 27,000, compute the amount of stock reserve. (Nov 2009, 2 marks)
\nAnswer:
\n\"Departmental<\/p>\n

Question 6.
\nDepartment R sells goods to Department S at a profit of 25% on cost and Department T at 10% profit on cost. Department S sells goods to R and T at a profit of 15% and 20% on sales respectively. Department T charges 20% and 25% profit on cost to Department R and S respectively.
\nDepartment Managers are entitled to 10% commission on net profit subject to unrealised profit on departmental sales being eliminated. Departmental profits after charging Manager\u2019s commission, but before adjustment of unrealised profit are as under:
\n\"Departmental
\n(Nov 2010, 8 marks)
\nAnswer:
\n\"Departmental
\n\"Departmental<\/p>\n

Question 7.
\nDepartment A sells goods to Department B at a profit of 20% on cost and Department C at 15% profit on cost. Department B sells goods to A and C at a profit of 10% and 20% on sales respectively. Department C sells goods to A and B at 15% and 10% profit on cost respectively.<\/p>\n

Departmental managers are entitled to 10% commission on net profit subject to unrealized profit on departmental sales being eliminated. Departmental profits after charging manager\u2019s commission, but before adjustment of unrealized profit are as under:
\nDepartment A \u20b9 36,000
\nDepartment B \u20b9 27,000
\nDepartment C \u20b9 18,000
\nStock lying at different departments at the end of the year are as below:
\n\"Departmental
\n(Nov 2012, 8 marks)
\nAnswer:
\n\"Departmental<\/p>\n

Question 8.
\nDepartment A sells goods to Department B at a profit of 50% on cost and to Department C at 20% on cost. Department B sells goods to A and C at a profit of 25% and 15% respectively on sales. Department C charges 30% and 40% profit on cost to Department A and B respectively.
\nStock lying at different departments at the end of the year are as under:
\n\"Departmental
\nCalculate the unrealized profit of each department and also total unrealized profit. (May 2013, 4 marks)
\nAnswer:
\n\"Departmental<\/p>\n

Question 9.
\nDepartment P sells goods to Department S at a profit of 25% on cost and to Department O at a profit of 15% on cost. Department S sells goods to P and Q at a profit of 20% and 30% on sales respectively. Department Q sells goods to P arid S at 20% and 10% profit on cost respectively.<\/p>\n

Departmental Managers are entitled to 10% commission on net profit subject to unrealized profit on departmental sales being eliminated. Departmental profits aller charging Manager\u2019s commission, but before adjustment of unrealized profits are as below:
\nDepartment P \u20b990,000
\nDepartment S \u20b960,000
\nDepartment Q \u20b9 45,000
\nStock lying at different Departments at the end of the year are as below:
\n\"Departmental
\n(May 2014,8 Marks)
\nAnswer:
\n\"Departmental<\/p>\n

Question 10.
\nThere is transfer\/sale among the three departments as below Department X sells goods to Department Y at a profit of 25% on cost and to Department Z at 20% profit on cost. Department Y sells goods to X and Z at a profit of 15% and 20% on sales
\nrespectively.<\/p>\n

Department Z charges 20% and 25% profit on cost to Departments X and Y respectively. Department Managers are entitled to 10% commission on net profit subject to unrealised profit on departmental sales being eliminated. Departmental profits after charging Managers\u2019 commission, but before adjustment of unrealised profit are as under:
\n\"Departmental
\nFind out the correct departmental profits after charging Managers\u2019 commissions. (May 2016, 8 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 11.
\nDepartment X sells goods to Department Y at a profit of 50% on cost and to Department Z at 20% on cost. Department Y sells goods to Department X and Z at a profit of 25% and 15% respectively on sales. Department Z charges 30% profit on cost to Department X and 40% profit on sale to Y. Stocks lying at different departments at the end of the year are as under:
\n\"Departmental
\nCalculate the unrealized profit of each department and also total unrealized profit.
\n(Nov 2017, 4 marks)
\nAnswer:
\n\"Departmental<\/p>\n

Question 12.
\nAxe Limited has four departments, A, B, C, and D. Department A sells goods to other departments at a profit of 25% on cost. Department B sells goods to other departments at a profit of 30% on sales. Department C sells goods to other departments at a profit of 10% on cost. Department D sells goods to other departments at a profit of 15% on sales. Stock lying at different departments at the year-end was as follows:
\n\"Departmental
\nDepartmental managers are entitled to 10% commission on net profit subject to unrealized profit on departmental sales being eliminated. Departmental profits after charging manager\u2019s commission, but before adjustment of unrealized profit are as under:
\nDepartment\u00a0 A \u20b9 2,25,000
\nDepartment B \u20b9 3,37,500
\nDepartment C \u20b9 1,80,000
\nDepartment D \u20b9 4,50,000
\nCalculate the correct departmental profits after charging Manager\u2019s commission. (Nov 2018, 5 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

\"Departmental<\/p>\n

Question 13.
\nAnswer the following:
\nDepartment A sells goods to Department B at a profit of 20% on cost and to Department C at 50% on cost. Department B sells goods to Department A and Department C at a profit of 15% and 10% on sales respectively. Department C sells goods to Department A and Department B at a profit of 10% and 5% on cost respectively.
\n\"Departmental
\nCalculate Department wise unrealised profit on Stock. (Nov 2020, 5 marks)<\/p>\n

Question 14.
\nXYZ Garage consists of 3 departments: Spares, Service, and Repairs, each department being managed by a departmental manager whose commission was respectively 5%. 10% and 10% of the respective departmental polit subject to a minimum of \u20b9 5000 in each case. Interdepartmental transfers take place at a\u00a0 loaded price as follows:
\nFrom Spares to Service 5% above cost
\nFrom Spares to Repairs 10% above cost
\nFrom Repairs to Service 10% above cost
\nIn respect of the year ended March 31st, 2019, the firm had already prepared and closed the departmental trading and profit and loss account. Subsequently, it was discovered that the closing stocks of department had
\nincluded inter-departmentally transferred goods at loaded price instead of the correct cost price.
\nFrom the following information, you are required to prepare a statement re-computing\u00a0the departmental profit or loss:
\n\"Departmental
\n(Jan 2021,10 Marks)<\/p>\n

Question 15.
\nFGH Ltd has three departments I. J. K. The following information is provided for the year ended 31.3.2004
\n\"Departmental
\nStocks of each department are valued at costs to the department concerned. Stocks of I are transferred to J at cost plus 20% and stocks of J are transferred to K at a Gross Profit of 20% on sales. Other common expenses are Salaries and Staff Welfare \u20b9 18,000, Rent \u20b9 6,000. Prepare Departmental Trading, Profit and Loss Account for the year ending 31 .3.2004. , (Nov 2004, 10 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 16.
\nBrahma Limited has three departments and submits the following information for the year ending on 31st March 2011.<\/p>\n\n\n\n\n\n\n\n\n
Particulars<\/td>\nA<\/td>\nB<\/td>\nC<\/td>\nTotal (\u20b9)<\/td>\n<\/tr>\n
Purchases (units)<\/td>\n5,000<\/td>\n10,000<\/td>\n15,000<\/td>\n<\/td>\n<\/tr>\n
Purchases (Amount)<\/td>\n<\/td>\n<\/td>\n<\/td>\n8,40,000<\/td>\n<\/tr>\n
Sales (units)<\/td>\n5,200<\/td>\n9,800<\/td>\n15,300<\/td>\n<\/td>\n<\/tr>\n
Selling price (\u20b9 per unit)<\/td>\n40<\/td>\n45<\/td>\n50<\/td>\n<\/td>\n<\/tr>\n
Closing Stock (Units)<\/td>\n400<\/td>\n600<\/td>\n700<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

You are required to prepare departmental trading account of Brahma Limited assuming that the rate of profit on sales is uniform in each case. (May 2011, 5 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 17.
\nM\/s. AM Enterprise had two departments, Cloth and Readymacle Clothes. The Readymade clothes were made by the firm itself out of the cloth supplied by the Cloth Department at its usuel selling price. From the following figures, prepare Departmental Trading and Profit & Loss Account for the year ended 31 March, 2011:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nCloth Department \u00a0\u20b9<\/td>\nReadymade Clothes Department \u20b9<\/td>\n<\/tr>\n
Opening Stock on 1st April 2010<\/td>\n31,50,000<\/td>\n5,32,000<\/td>\n<\/tr>\n
Purchases<\/td>\n2,10,00,000<\/td>\n1,68,000<\/td>\n<\/tr>\n
Sales<\/td>\n2,3100,000<\/td>\n47,25,000<\/td>\n<\/tr>\n
Transfer to Ready-made<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Clothes Department<\/td>\n31,50,000<\/td>\n–<\/td>\n<\/tr>\n
Manufacturing Expenses<\/td>\n–<\/td>\n6,30,000<\/td>\n<\/tr>\n
Selling Expenses<\/td>\n2,10,000<\/td>\n73,500<\/td>\n<\/tr>\n
Rent & Warehousing<\/td>\n8,40,000<\/td>\n5,60,000<\/td>\n<\/tr>\n
Stock on 31st\u2019 March, 2011<\/td>\n21,00,000<\/td>\n6,72,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In addition to the above, the following information is made available for necessary consideration:
\nThe stock In the Readymacie Clothes Department may be considered as consisting of 75% cloth and 25% other expenses. The Cloth Department earned a gross profit at the rate of 15% in 2009-10. General Expenses of the business as a whole amount to \u20b9 10,85,000. (Nov 2011, 8 marks)
\nAnswer:
\nWorking Note:
\nCalculation of Stock Reserve:
\nRate of Gross Profit of Cloth Department, for the year 2010-11
\n= \\(\\frac{\\text { Gross Profit }}{\\text { Total Sales }} \\times 100\\)
\n= \\(\\frac{\u20b9 42,00,000}{\u20b9(2,31,00,000+31,50,000)} \\times 100\\) = 16%
\nClosing Stock of cloth in Readymade Clothes Department = 75%
\ni.e. 6,72,000 x 75% = \u20b9 5,04,000
\n\u20b9 5,04,000 x 16% = \u20b9 80,640
\nStock Reserve for unreaLized profit included In opening stock of readymade clothes @ 15% i. e. (\u20b9 5,32,000 x 75% x 15%) = \u20b9 59,850
\nAdditional Stock Reserve required during the year = \u20b9 80,640 – \u20b9 59,850
\n= \u20b9 20,790.
\n\"Departmental \"\"<\/p>\n

Question 18.
\nMega Ltd. has two departments, A and . From the following particulars. prepare departmental Trading A\/c and General Profit & Loss Account for the year ended 31st March. 2014.
\n\"Departmental
\nPurchased goods have been transferred mutually at their respective departmental purchase cost and finished goods at departmental market price and that 30% of the closing finished stock with each department represents finished goods received from the other department. (Nov 2014,8 marks)
\nAnswer:
\n\"Departmental<\/p>\n\n\n\n\n\n
Particulars<\/td>\nDepartment A (\u20b9)<\/td>\nDepartment B (\u20b9)<\/td>\n<\/tr>\n
Stock of Finished Goods<\/td>\n1,02,000<\/td>\n62,000<\/td>\n<\/tr>\n
Stock related to other departments (30% of Finished Goods)<\/td>\n30,600<\/td>\n18,600<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

** Net transfer of Finished Goods by
\nDepartment A to B = \u20b9 (1,75,000 – 45,000) = \u20b9 1,30,000
\nDepartment B to A = \u20b9 (150,000 – 32,000) = \u20b9 1,18,000
\n\"Departmental
\n2. Unrealised profit included In the closing stock
\nDepartment A = 27.16% of \u20b9 30,600 (30% of Stock of Finished Goods
\n\u20b9 1,02,000) = \u20b9 831100
\nDepartment B = 24.79% of \u20b9 18,600 (30% of Stock of Finished Goods \u20b9 62,000) = \u20b9 4611.00.<\/p>\n

\"Departmental<\/p>\n

Question 19.
\nM\/s. Suman Enterprises has two Departments, Finished Leather and Shoes. Shoes are made by the Firm, itself out of leather supplied by Leather Department at its usual selling price. From the following figures. prepare Departmental Trading and Profit & Loss Account for the year ended 31st March 2014:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nFinished Leather Department (\u20b9)<\/td>\nShoes Department (\u20b9)<\/td>\n<\/tr>\n
Opening Stock (As on 01.04.2013)<\/td>\n30,20,000<\/td>\n4,30,000<\/td>\n<\/tr>\n
Purchases<\/td>\n1,50,00,000<\/td>\n2,60,000<\/td>\n<\/tr>\n
Sales<\/td>\n1,80,00,000<\/td>\n45,20,000<\/td>\n<\/tr>\n
Transfer to Shoes Department<\/td>\n30,00,000<\/td>\n5,00,000<\/td>\n<\/tr>\n
Manufacturing Expenses<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
Selling Expenses<\/td>\n1,50,000<\/td>\n60,000<\/td>\n<\/tr>\n
Rent and Warehousing<\/td>\n5,00,000<\/td>\n3,00,000<\/td>\n<\/tr>\n
Stock on 31.03.2014<\/td>\n12,20,000<\/td>\n5,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The following further information available for necessary consideration:
\n(i) The stock in Shoes Department may be considered as consisting of 75% of Leather and 25% of other expenses.
\n(ii) The Finished Leather Department earned a Gross Profit @ 15% In 2012-1 3.
\n(iii) General expenses of the business as a whole amount to \u20b9 8,50,000. (May 2015, 8 marks)
\nAnswer:
\n\"Departmental \"\"
\nStock Reserve for this year 75,000 – 48,375 = \u20b9 26,625<\/p>\n

Question 20.
\nThe following balances were extracted from the books of Beta. You are required to prepare Departmental Trading Account and General Profit & Loss Account for the year ended 31st December 2016:<\/p>\n\n\n\n\n\n\n
Particulars<\/td>\nDeptt A \u20b9<\/td>\n\u00a0Deptt. B \u20b9<\/td>\n<\/tr>\n
Opening Stock<\/td>\n3,00,000<\/td>\n2,40,000<\/td>\n<\/tr>\n
Purchases<\/td>\n39.00,000<\/td>\n60,00,000<\/td>\n<\/tr>\n
Sales<\/td>\n54,60,000<\/td>\n90,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

General expenses incurred for both the Departments were \u20b9 7,50,000 and you are also supplied with the following information:
\n(i) Closing stock of Department A \u20b9 6,00,000 including goods from Department B for \u20b9 1,20,000 at cost to Department A.
\n(ii) Closing stock of Department B \u20b9 12,00,000 including goods for Department A for 180,000 at cost to Department B.
\n(iii) Opening stock of Department A and Department B include goods of the value of \u20b9 60,000 and \u20b9 90,000 taken from Department B and Department A respectively at cost to transferee departments.
\n(iv) The gross profit is uniform from year to year. (May 2017, 8 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 21.
\nM\/s Delta is a Departmental Store having three departments X, Y, and Z. The information regarding three departments for the year ended 31st March 2018 are given below:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Particulars<\/td>\nDept. X<\/td>\nDept. Y<\/td>\nDept. Z<\/td>\n<\/tr>\n
Opening Stock<\/td>\n18,000<\/td>\n12,000<\/td>\n10,000<\/td>\n<\/tr>\n
Purchases<\/td>\n66,000<\/td>\n44,000<\/td>\n22,000<\/td>\n<\/tr>\n
Debtors at end<\/td>\n7,500<\/td>\n5,000<\/td>\n5,000<\/td>\n<\/tr>\n
Sales<\/td>\n90,000<\/td>\n67,500<\/td>\n45,000<\/td>\n<\/tr>\n
Closing Stock<\/td>\n22,500<\/td>\n8,750<\/td>\n10,500<\/td>\n<\/tr>\n
Value of furniture in each Department<\/td>\n10,000<\/td>\n10,000<\/td>\n5,000<\/td>\n<\/tr>\n
Floor space occupied by each Dept. (in sq It)<\/td>\n1,500<\/td>\n1,250<\/td>\n1,000<\/td>\n<\/tr>\n
Number of employees in each Department<\/td>\n25<\/td>\n20<\/td>\n15<\/td>\n<\/tr>\n
Electricity consumed by each Department (in units)<\/td>\n300<\/td>\n200<\/td>\n100<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Additional Information:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/td>\nAmount (\u20b9)<\/td>\n<\/tr>\n
Carriage inwards<\/td>\n1,500<\/td>\n<\/tr>\n
Carriage outwards<\/td>\n2,700<\/td>\n<\/tr>\n
Salaries<\/td>\n24,000<\/td>\n<\/tr>\n
Advertisement<\/td>\n2,700<\/td>\n<\/tr>\n
Discount allowed<\/td>\n2,250<\/td>\n<\/tr>\n
Discount received<\/td>\n1,800<\/td>\n<\/tr>\n
Rent, Rates, and Taxes<\/td>\n7,500<\/td>\n<\/tr>\n
Depreciation on furniture<\/td>\n1,000<\/td>\n<\/tr>\n
Electricity Expenses<\/td>\n3,000<\/td>\n<\/tr>\n
Labour welfare expenses<\/td>\n2,400<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Prepare Departmental Trading and Profit & Loss Account for the year ended 31st March 2018 after providing provision for Bad Debts at 5%. (May 2018, 10 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 22.
\nThe following details are available in respect of a business for a year.<\/p>\n\n\n\n\n\n\n
Department<\/td>\nOpening Stock<\/td>\nPurchase<\/td>\nSales<\/td>\n<\/tr>\n
A<\/td>\n120 units<\/td>\n1000 units<\/td>\n1,020 units at\u00a0 \u20b9 20.00 each<\/td>\n<\/tr>\n
B<\/td>\n80 units<\/td>\n2,000 units<\/td>\n1,920 units at \u20b9 22.50 each<\/td>\n<\/tr>\n
C<\/td>\n152 units<\/td>\n2,400 units<\/td>\n2,496 units at \u20b9 25.00 each<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Total Value of Purchases is 1,00,000. It is observed that the rate of Gross Profit is the same in each department. Prepare Departmental Trading Account for the above year.<\/p>\n

Answer:
\n\"Departmental
\n2. Computation of Gross Profit Ratio
\nWe are informed that the GP Ratio is the same for all Departments. Selling Price is given for each department products but the Sale Quantity is different from that of Purchase Quantity. To find the Uniform GP Rate, the Sale Value of Purchase Quantity should be compared with the Total Cost of Purchase, as under:
\n\"Departmental<\/p>\n

\"Departmental<\/p>\n

Question 23.
\nThe following balances were extracted from the books of ABC Sons. You are required to prepare Departmental Trading Account and Profit and Loss Account for the year ended 31 March after adjusting the unrealized Department Profits if any.<\/p>\n\n\n\n\n\n\n
Particulars<\/td>\nDeptt. A<\/td>\nDeptt. B<\/td>\n<\/tr>\n
Opening Stock<\/td>\n\u20b9 50,000<\/td>\n\u20b9 40,000<\/td>\n<\/tr>\n
Purchases<\/td>\n\u20b9 6,50,000<\/td>\n\u20b9 9,10,000<\/td>\n<\/tr>\n
Sales<\/td>\n\u20b9 10,00,000<\/td>\n\u20b9 15,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

General Expenses incurred for both the Departments were \u20b9 1,25,000 and you are also supplied with the following information:
\n(a) Closing Stock of Department A \u20b9 1,00,000 including goods from Department B for \u20b9 20,000 at cost of Department A.
\n(b) Closing Stock of Department B \u20b9 2,00,000 including goods from Department A for \u20b9 30,000 at cost to Department B.
\n(c) Opening Stock \u00e0f Department A and Department B include goods of the value of \u20b9 10,000 and \u20b9 15,000 taken from Department B and Department A respectively at cost to Transferee Departments.
\n(d) The rate of Gross Profit is uniform from year to year.
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 24.
\nXY and Z carried on a business of Drapers and Tailors in Delhi; X was in charge of Department “A\u201d dealing in cloth, Y of Department B (or selling garments and Z of Department \u2018C the tailoring section. It had been agreed that each of the three partners would receive 75% of the profits disclosed by accounts of the department of which he was in charge and the balance of the profits would be shared in the proportion. X \u00bd, Y 1\/4, and Z 1\/4. The following is the Trading and Profit and Loss Account of the firm for the six months ended 31st March 2012.
\n\"Departmental
\nAfter consideration of the following, prepare Departmental Accounts and Profit and Loss Appropriation Account.
\n(i) Cloth of the value of \u20b9 10,700 and other goods of the value of \u20b9 600 were transferred at selling price by Departments A and B respectively to Department C.
\n(ii) Cloth and garments are sold in the showroom. Tailoring work is carried out in the workshop.
\n(iii) The details of salaries and wages were as follows:
\n(a) General Office 50%, showroom 25%, and 25% for workshop 75% of which is for tailoring alone.
\n(b) Allocate General Office Expenses, in the proportion of 3:2:1 among the Departments A, B, C.
\n(c) Distribute showroom expenses in the proportion of 1:2 between Departments A and B.
\n(iv) The workshop rent is \u20b9 1,000 per month. The rent of the General Office and Showroom is to be divided equally between Departments A and B.
\n(v) Depreciation charges are to be allocated equally amongst the three Departments.
\n(vi) All other expenses are to be allocated on the basis of turnover (excluding Internal Transfers).
\n(vii) Discounts received are to be credited to the three Departments as follows: A \u20b9 400; B \u20b9 250; C \u20b9 150.
\n(viii) The opening stock of Department C does not include any goods transferred from Department A.
\nAnswer:
\n\"Departmental
\nNote: Gross profit of Department A is 30% in Sales (including transfer to Dept C). There is some unrealised profit only on inter-departmental stock. 30% of \u20b9 5,700 is required as stock reserve. This will be debited to Profit and Loss Appropriation account.
\n\"Departmental \"\"<\/p>\n

\"Departmental<\/p>\n

Question 25.
\nABC Ltd., has 3 departments, A, B, C. The following information is provided:
\n\"Departmental
\nStock of each department is valued at cost to the department concerned. Stocks of A department are transferred to B at a margin of 50% above departmental cost. Stocks of B department are transferred to C department at a margin of 10% above departmental cost. Other expenses were: Salaries \u20b9 2,000, Printing & Stationery \u20b9 1,000. Rent \u20b9 6,000, Interest paid \u20b9 4,000, Depreciation \u20b9 3000, Allocate expenses in the ratio of departmental gross profit. Opening figures of reserves for unrealised profits on departmental stocks were; Department B \u20b9 1,000; Department C \u20b9 2,000. Prepare Departmental Trading and Profit and Loss Account for the year ending on March 31, 2012.
\nAnswer:
\n\"Departmental \"\"<\/p>\n

Question 26.
\nMartis Ltd. has several departments. Goods supplied to each department are debited to a Memorandum Departmental Stock Account at cost, plus a fixed percentage (markup) to give the normal selling price. The mark-up is credited to a memorandum departmental \u2018Mark-up account\u2019, any reduction in selling prices (mark-down) will require adjustment r the stock account and in mark-up account. The markup for Department A for the last three years has been 25%. Figures relevant to Department A for the year ended 31st March 2013 were as follows:
\nOpening stock as on 1 April 2012, at cost \u20b9 65,000
\nPurchase at cost \u20b9 2,00,000
\nSales \u20b9 3,00,000
\nIt is further ascertained that:
\n(1) Shortage of stock found in the year ending 31.03.2013, costing to \u20b9 1,000 were written oil.
\n(2) Opening stock on 01.04.12 including goods costing \u20b9 6,000 had been sold during the year and had been marked down in the selling price by \u20b9 600. The remaining stock had been sold during the year.
\n(3) Goods purchased during the year were marked down by \u20b9 1,200 from a cost of \u20b9 15,000. Marked-down stock costing \u20b9 5,000 remained unsold on 31 .03.13.
\n(4) The departmental closing stock is to be valued a cost subject to adjustment for markup and mark-down.
\nYou are required to prepare:
\n(i) A Departmental Trading Account for Department A for the year ended 31st March 2013 in the books of Head Office.
\n(ii) A Memorandum Stock Account for the year.
\n(iii) A Memorandum Mark-up Account for the year. (Nov 2023, 12 marks)
\nAnswer:
\n\"Departmental \"\" \"\" \"\" \"\"<\/p>\n

Question 27.
\nM\/s Shyam Udyog, a retail store, has two departments, Department X and Department Y for each of which stock account and memorandum \u2018mark-up\u2019 account are kept. All the goods supplied to each department are debited to the stock account at cost plus a markup\u2019, which together make up the selling price of the goods, and in the account the sale proceeds of the goods are credited. The amount of \u2018mark-up\u2019 is credited to the Departmental Mark-up amount. If the selling price of any goods is reduced below its normal selling price, the reduction \u2018marked down\u2019 is adjusted both in the Stock Account and the Departmental Mark-up Account. The rate of \u2018Mark up\u2019 for X Department is 33-1\/3% of the cost and for Y Department it is 50% of the
\ncost. The following figures have been taken from the books for the year ended March 2016:<\/p>\n\n\n\n\n\n\n
<\/td>\nX Department Amount (\u20b9)<\/td>\nY Department Amount (\u20b9)<\/td>\n<\/tr>\n
Stock as on April 1st at cost<\/td>\n3,15,000<\/td>\n5,58,000<\/td>\n<\/tr>\n
Purchases<\/td>\n22,77,000<\/td>\n28,02,000<\/td>\n<\/tr>\n
Sales<\/td>\n28,68,000<\/td>\n37,50,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(1) The stock of Department X on April 1st, 2015 included goods the selling price of which had been marked down by \u20b9 37,800. These goods were sold during the year at the reduced prices.
\n2) Certain stock of the value of \u20b9 2,07,000 purchased from the Department X was later in the year transferred to the Department Y and sold for \u20b9 3,10,500. As a result, though cost of the goods is Included in the Department X the sale proceeds have been credited to the Department Y.
\n(3) During the year 2015-16 to promote the goods, they were marked down as follows:<\/p>\n\n\n\n\n\n
<\/td>\nCost (\u20b9)<\/td>\nMarked\u00a0 down (\u20b9)<\/td>\n<\/tr>\n
Department X<\/td>\n1,68,000<\/td>\n10,800<\/td>\n<\/tr>\n
Department Y<\/td>\n3,00,000<\/td>\n60,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

All the goods marked down, were sold except of Department Y of the value of 1,50,000 marked down by \u20b9 30,000.
\n(4) At the time of stock-taking on 31st March 2016, it was discovered that cloth of Department X of the cost of \u20b9 11,700 was missing and it was decided that the amount be written off. You are required to prepare for both the departments for the year ended 31st March 2016:
\n(a) The Memorandum Stock Account and
\n(b) The Memorandum Mark-up Account. (Nov 2016, 8 marks)
\nAnswer:
\n\"Departmental \"\"<\/p>\n

\"Departmental<\/p>\n

Question 28.
\nABC Ltd. has several departments. Goods supplied to each department are debited to a Memorandum Departmental Stock Account at cost plus a fixed percentage (marks-up) to give the normal selling price. The amount of markup is credited to a Memorandum Departmental Markup account. if the selling price of goods is reduced below its normal selling prices, the reduction (mark-down) will require adjustment both in the stock account and the mark-up account. The markup for department X for the last three years has been 20%. Figures relevant to department X for the year ended 31st March 2019 were as follows:
\nStock as on 1 April, 2018 at cost \u20b9 1,50,000
\nPurchases at cost \u20b9 4,30,000
\nSales \u20b9 6,50,000
\nIt is further ascertained that:
\n1. Shortage of stock found in the year ending 31.3.2019, costing \u20b9 4,000 were written off.
\n2. Opening stock on 1.4.2018 including goods costing \u20b9 12,000 had been sold during the year and had been marked down in the selling price by \u20b91,600. The remaining stock had been sold during the year.
\n3. Goods purchased during the year were marked down by \u20b9 3,600 from a cost of \u20b9 30,000. Marked-down stock costing \u20b9 10,000 remained unsold on 31 .3.2019.
\n4. The departmental closing stock is to be valued at cost subject to adjustment for mark-up and mark-down.
\nYou are required to prepare for the year ended 31st March, 2019:
\n(i) Departmental Trding Account for department X for the year ended 31st March, 2019 in the books of head office.
\n(ii) Memorandum Stock Account for the year ended 31st March 2019.
\n(iii) Memorandum Mark-Up account for the year ended 31st March 2019. (Nov 2019, 10 marks)
\nAnswer:
\n\"Departmental \"\" \"\"
\nNote: It has been assumed that markup (given in the question) is determined as a percentage of cost.<\/p>\n

Question 29.
\nA B & C is a Retail Store having 2 Departments A and B. The Company maintains Memorandum Stock Account & Memorandum Mark-Up Account for each of the Departments. Supplies issued to the Departments are debited to the Memorandum Stock Account of the Department at Cost plus Mark-Lip, and Departmental Sales are credited to this Account. The Mark Up on supplies issued to the Departments is credited to the Mark-Up Account for the Department. When it is necessary to reduce the Selling Price below the Normal Selling Price. i.e. Cost plus Mark-Up, the reduction (Mark-Down) is entered in the Memorandum Stock Account and Mark-up Account. Department P has a markup of 1\/3rd on Cost, and Department Q has a markup of 50% on Cost. The following information has been extracted from the records of the Company for a year ending 31st December.<\/p>\n\n\n\n\n\n\n
Particulars<\/td>\nA<\/td>\nB<\/td>\n<\/tr>\n
Opening Stock (at Cost)<\/td>\n24,000<\/td>\n36,000<\/td>\n<\/tr>\n
Purchases<\/td>\n1,62,000<\/td>\n1,90,000<\/td>\n<\/tr>\n
Sales<\/td>\n2,10,000<\/td>\n2,85,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Opening Stock of Department A includes goods on which the Selling Price has been marked down by \u20b9 510. These goods were sold in January at the reduced Selling Price.
\nCertain goods purchased during the year for \u20b9 2,700 for Department A, were transferred during the year to Department B and sold for \u20b9 4,500. Purchases and Sales are recorded in the Purchases of Department A and the Sales of Department B respectively, but no entries have been made in respect of the transfer.<\/p>\n

Goods purchased during the year were marked down as follows:<\/p>\n\n\n\n\n\n
<\/td>\nA<\/td>\nB<\/td>\n<\/tr>\n
Cost<\/td>\n8,000<\/td>\n21,000<\/td>\n<\/tr>\n
Markdown<\/td>\n800<\/td>\n4,100<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At the end of the year there were some items \u00a1n the stock of Department B, which had been marked down to \u20b9 2,300. With this exception, all goods marked down during the year were sold during the year at reduced prices.
\nDuring stock-taking at the end of the year, goods which had cost \u20b9 240 were found to be missing in Department
\nIt was determined that loss should be regarded as irrecoverable. Closing Stock in both Departments are to be valued at Cost for the purpose of the annual accounts.<\/p>\n

Prepare for the year ended 31st December –
\n1. Trading A\/c,
\n2. Memorandum Stock A\/c, and
\n3. Memorandum Mark Up A\/c.
\nAnswer:
\n\"Departmental
\nNote 1: Mark Down In Unsold Stock of Department Q
\nTotal Mark down \u00d7 \\(\\frac{\\text { Value of Stock }}{\\text { Value of Mark Down Goods }}=4,100 \\times \\frac{2,300}{27,400} \\) = \u20b9 344
\nValue of Mark Down G00ds = Cost (+) Normal Mark Up 50% (-) Amount Marked Down
\n= \u20b9 21,000 (+) \u20b9 10,500 (-) \u20b9 4,100 (given)
\n= \u20b9 27,400
\n\"\" \"Departmental<\/p>\n

Question 30.
\nABC Limited is a retail organisation with several departments. Goods supplied to each department are debited to a Memorandum Departmental Stock Account at cost, plus fixed percentage (markup) to give the normal selling price. The markup Is credited to a Memorandum Departmental \u201cMark-up Account\u201d. Any reduction in selling prices (mark-down) will require adjustment In the stock account and in mark-up account. The markup for Department A for the last three years has been 40%. Figures relevant to Department A for the ended 31st Dec. 2018 were as follows:
\nStock 1st Jan., 2018 at cost, \u20b9 80,000, Purchases at cost \u20b9 1,80,000, Sales 3,20,000. It is further ascertained that:
\n(a) Goods purchased in the period were marked down by \u20b9 1,400 from a cost of \u20b9 16,000. Marked-down stock costing \u20b9 4,000 remained unsold on 31st\u2019 Dec 2018.
\n(b) Stock shortages at the year-end, which had cost 1,200 were to be written off.
\n(c) Stock at 1st Jan. 2018 including goods costing \u20b9 8,200 had been sold during the year and has been mark down in the selling price by \u20b9 740. The remaining stock had been sold during the year.
\n(d) The departmental closing stock is to be valued at cost subject to adjustments for mark-up and mark-down.
\nPrepare
\n(i) A Departmental Trading Account
\n(ii) A Memorandum Stock Account
\n(iii) A Memorandum Mark-up Account for the year 2018.
\nAnswer:
\n\"Departmental \"\" \"\" \"\"<\/p>\n

\"Departmental<\/p>\n

Question 31.
\nFbb Store Ltd. is a retail store operating two departments. The company maintains Memorandum Stock account and memorandum mark-up account for each of the departments. Supplies issued to the department are debited to the Memorandum Stock account of the department at cost plus the Mark up, and departmental sales are credited to this account. The markup on supplies issued to the departments is credited to the Mark-up account for the department. When it is necessary to reduce the selling price below the normal selling price. i.e. cost plus Mark-up, the reduction (markdown) is entered in the Memorandum Stock account and in the mark-up account.<\/p>\n

Department A has a Mark-up of 33-1\/3% on cost, and Department B 50% on cost. The following information has been extracted from the records of Southern Store Ltd. for the year ended 31st December 2018.<\/p>\n\n\n\n\n\n\n
<\/td>\nDepartment A \u20b9<\/td>\nDepartment B \u20b9<\/td>\n<\/tr>\n
Stock, 1 January. 2012 at cost<\/td>\n24,000<\/td>\n36,000<\/td>\n<\/tr>\n
Purchases<\/td>\n1,62,000<\/td>\n1,90,000<\/td>\n<\/tr>\n
Sales<\/td>\n2,10,000<\/td>\n2,85,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

(a) The stock of Department A on 1st January 2018 included goods on which the selling price has been marked down by \u20b9 510. These goods were sold in January. 2018 at the reduced price.
\n(b) Certain goods purchased in 2012 for \u20b9 2,700 for Department A were transferred during the year to Department B and sold for \u20b9 4,050. Purchase and sale are recorded in the purchases of Department A and the sales of Department B respectively, but no entries in respect of the transfer have been made.
\n(C) Goods purchased In 2018 were marked down as follows:<\/p>\n\n\n\n\n\n
<\/td>\nDepartment A \u20b9<\/td>\nDepartment B \u20b9<\/td>\n<\/tr>\n
Cost<\/td>\n8,000<\/td>\n21,000<\/td>\n<\/tr>\n
Mark down<\/td>\n800<\/td>\n4,100<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At the end of the year there were some items in the stock of Department B which had been marked clown to \u20b9 2,300. With this exception all goods marked down in 2018, were sold during the year at the reduced prices:
\n(d) During stocktaking on 31st December 2018, goods which had cost \u20b9 240 wore found to be missing in department A, It was determined that the loss should be regarded as irrecoverable.
\n(e) The closing stock in both departments are to be valued at cost for the purpose of the annual accounts. Prepare for each department for the year ended 31st December, 2018
\n(i) a Trading Account,
\n(ii) a Memorandum Stock Account, and
\n(iii) a Memorandum Mark-up Account.
\nAnswer:
\n\"Departmental \"\" \"\" \"\" \"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Departmental Accounts \u2013 CA Inter Accounts Question Bank is designed strictly as per the latest syllabus and exam pattern. Departmental Accounts – CA Inter Accounts Question Bank Question 1. Basis of aNocation of common expenditure among different departments. (Nov 1998, 4 marks) Answer: Basis of allocation of common expenditure among different departments: At the time …<\/p>\n

Departmental Accounts – CA Inter Accounts Question Bank<\/span> Read More »<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[167],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/25579"}],"collection":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/comments?post=25579"}],"version-history":[{"count":2,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/25579\/revisions"}],"predecessor-version":[{"id":25656,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/posts\/25579\/revisions\/25656"}],"wp:attachment":[{"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/media?parent=25579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/categories?post=25579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gstguntur.com\/wp-json\/wp\/v2\/tags?post=25579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}