(a) Which business organizations have the need to prepare departmental accounts? (b) State two reasons for preparing departmental accounts. (c) State how th...

Assessment: WAEC SSCE - Financial Accounting - 2018 (Essay) Subject: Financial Accounting

Question 1 Report

(a) Which business organizations have the need to prepare departmental accounts?

(b) State two reasons for preparing departmental accounts.

(c) State how the following incomes and expenses are apportioned in departmental accounts:
i. discount allowed
ii. discount received
iii. rent and rates
iv. staff related costs
v depreciation
vi. canteen expenses
vii. electricity
viii. advertising
ix. bad debts

Answer

Item	Basis of apportionment
i. Discount allowed	Ratio of departmental (credit) sales
ii. Discount received	Ratio of departmental purchases
iii. Rent and rates	Floor area / space occupied by each department
iv. Staff related costs	Number of employees (or time devoted) per department
v. Depreciation	Value/cost of fixed assets used by each department
vi. Canteen expenses	Number of employees per department
vii. Electricity	Number of light/power points or floor area
viii. Advertising	Ratio of departmental sales
ix. Bad debts	Ratio of departmental (credit) sales

Item	Basis of apportionment
i. Discount allowed	Ratio of departmental (credit) sales
ii. Discount received	Ratio of departmental purchases
iii. Rent and rates	Floor area / space occupied by each department
iv. Staff related costs	Number of employees (or time devoted) per department
v. Depreciation	Value/cost of fixed assets used by each department
vi. Canteen expenses	Number of employees per department
vii. Electricity	Number of light/power points or floor area
viii. Advertising	Ratio of departmental sales
ix. Bad debts	Ratio of departmental (credit) sales

Departmental And Branch Accounts

Departmental Accounts

View Answer

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