Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Departmental Accounts Example
- This is a solution to the question posted here
- It is an example of departmental accounting
OK Mart Hillside
Income Statement for the year ended 31 March 20×5
| Department A | Department B | Department C | ||||
| $ | $ | $ | $ | $ | $ | |
| Sales | 180 000 | 138 000 | 82 000 | |||
| Less Cost of Sales | ||||||
| Opening Stock | 27 100 | 21 410 | 17 060 | |||
| Add Purchases | 101 300 | 81 200 | 62 900 | |||
| 128 400 | 102 610 | 79960 | ||||
| Less Closing Stock | (23 590) | (15 360) | (18 200) | |||
(104 810) | (87 250) | (61760) |
||||
| Gross Profit | 75 190 | 50 750 | 20 240 | |||
| Add Other Income | ||||||
| Discount Received | 1 013 | 812 | 629 |
|||
| 76 203 | 51 562 | 20 869 | ||||
| Less Expenses | ||||||
| Rent and business rates | 3 100 | 3 100 | 3 100 | |||
| Delivery expenses | 1 620 | 1 242 | 738 | |||
| Commission | 4 500 | 3 450 | 2 050 | |||
| Insurance | 600 | 600 | 600 | |||
| Salaries and wages | 45 600 | 30 400 | 15 200 | |||
| Advertising | 769 | 769 | 769 | |||
| Depriciation | 1 400 | 1 400 | 1 400 | |||
| Administration and General Expenses | 6 600 | 6 600 | 6 600 | |||
| (64 189) | (47 561) | (30 457) | ||||
| Net Profit/(Net Loss) | 12 014 | 4 001 | (9 588) |
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NB We are not asked to prepare the combined accounts but this should be straightforward enough. Please see notes on Financial Statements if you need help in the area.
To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.
