Yallawa Stores Ltd has two departments. The... | WAEC SSCE - Financial Accounting - 2020 (Essay)

Question 1 Report

Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as at 31st December 2017.

Purchases	Department A	720,000
	Department B	520,000
Rent and rates		50,000
Commission		55,000
Insurance		5,000
Sales	Department A	1,500,000
	Department B	1,250,000
Discount received		124,000
Advertising		20,000
Salaries and wages		250,000
Depreciation		35,000
Administration and general expenses		50,000
Opening stock	Department A	150,000
	Department B	100,000
CIosing stock	Department A	175,000
	Department B	142,000

Additional information: Expenses are to be apportioned to the departments as follows
i. commission on the basis of sales:
ii. salaries and wages - 3:2 for Department A and B respectively
iii. discount received - 10% of purchases
iv. other expenses are to be apportioned equally.

You are required to prepare a Departmental Trading, Profit, and Loss Account for the year ended 31st December 2017.

Answer

Particulars	Dept A (N)	Dept B (N)	Total (N)
Sales	1,500,000	1,250,000	2,750,000
Opening stock	150,000	100,000	250,000
Add Purchases	720,000	520,000	1,240,000
Goods available	870,000	620,000	1,490,000
Less Closing stock	(175,000)	(142,000)	(317,000)
Cost of sales	695,000	478,000	1,173,000
Gross profit	805,000	772,000	1,577,000
Add Discount received	72,000	52,000	124,000
Total income	877,000	824,000	1,701,000
Less expenses:
Commission	30,000	25,000	55,000
Salaries and wages	150,000	100,000	250,000
Rent and rates	25,000	25,000	50,000
Insurance	2,500	2,500	5,000
Advertising	10,000	10,000	20,000
Depreciation	17,500	17,500	35,000
Admin and general	25,000	25,000	50,000
Total expenses	260,000	205,000	465,000
Net profit	617,000	619,000	1,236,000

Particulars	Dept A (N)	Dept B (N)	Total (N)
Sales	1,500,000	1,250,000	2,750,000
Opening stock	150,000	100,000	250,000
Add Purchases	720,000	520,000	1,240,000
Goods available	870,000	620,000	1,490,000
Less Closing stock	(175,000)	(142,000)	(317,000)
Cost of sales	695,000	478,000	1,173,000
Gross profit	805,000	772,000	1,577,000
Add Discount received	72,000	52,000	124,000
Total income	877,000	824,000	1,701,000
Less expenses:
Commission	30,000	25,000	55,000
Salaries and wages	150,000	100,000	250,000
Rent and rates	25,000	25,000	50,000
Insurance	2,500	2,500	5,000
Advertising	10,000	10,000	20,000
Depreciation	17,500	17,500	35,000
Admin and general	25,000	25,000	50,000
Total expenses	260,000	205,000	465,000
Net profit	617,000	619,000	1,236,000

Departmental Accounts

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Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as at 31st December 2017. Purchases Department A 720,000 Depart...

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Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as at 31st December 2017. Purchases Department A 720,000 Depart...

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