A company carries on its business through five departments viz A, B, C, D and E.
ales ratio)
The Trial Balance on 31-12-84 was as follows:
A
B
C
D
Rs.
Rs.
Rs.
Rs.
Rs.
Opening Stock
5,000 3,000 2,500 4,000 4,500
Purchases 50,000 30,000 10,000 26,000 30,000
Sales
48,000 21,000 9,500 23,000 30,000
Closing stock 6,000 4,000 3,500 3,500 5,500
The opening and closing stock have been valued at cost. The expenses, which are to
be charged to each department in proportion to the cost of goods sold in the respective
departments are as follows:
Rs.
Salaries and Commission
5,510
Rent and Rates
1,450
Miscellaneous expenses
1,305
580
Insurance
Show the final result and the percentage on sales in each department and also the
combined result with percentage on sales.
Share
Answer:
Amt.(Rs) Account Title Amt.(Rs)
Opening Stock 2,26,000 Sales 6,80,000
Purchase 4,40,000 Return Outwards 15,000
Drawings 75,000 Creditors 50,000
Buildings 1,00,000 Bills Payable 63,700
Motor Van 30,000 Interest Received 20,000
Freight Inwards 3,400 Capital 3,50,000
Sales Return 10,000
Trade Expenses 3,300
Heat and Power 8,000
Salary and Wages 5,000
Legal Expenses 3,000
Postage and Telegram 1,000
Bad Debts 6,500
Answer:
Amt.(Rs) Account Title Amt.(Rs)
Opening Stock 2,26,000 Sales 6,80,000
Purchase 4,40,000 Return Outwards 15,000
Drawings 75,000 Creditors 50,000
Buildings 1,00,000 Bills Payable 63,700
Motor Van 30,000 Interest Received 20,000
Freight Inwards 3,400 Capital 3,50,000
Sales Return 10,000
Trade Expenses 3,300
Heat and Power 8,000
Salary and Wages 5,000
Legal Expenses 3,000
Postage and Telegram 1,000
Bad Debts 6,500
Explanation:
Amt.(Rs) Account Title Amt.(Rs)
Opening Stock 2,26,000 Sales 6,80,000
Purchase 4,40,000 Return Outwards 15,000
Drawings 75,000 Creditors 50,000
Buildings 1,00,000 Bills Payable 63,700
Motor Van 30,000 Interest Received 20,000
Freight Inwards 3,400 Capital 3,50,000
Sales Return 10,000
Trade Expenses 3,300
Heat and Power 8,000
Salary and Wages 5,000
Legal Expenses 3,000
Postage and Telegram 1,000
Bad Debts 6,500
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