ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts Example
- We have already looked at the basics of departmental accounting here
- Now it is time to look at an example
Example Question
From the following list of balances you are required to prepare a departmental Income Statement in columnar form for the year ended 31 March 20X5, in respect of the business carried on under the name of OK Mart Hillside Branch:
| $ | $ | ||
| Rent and business rates | 9 300 | ||
| Delivery expenses | 3 600 | ||
| Commission | 10 000 | ||
| Insurance | 1 800 | ||
| Purchases: | Department A | 101 300 | |
| Department B | 81 200 | ||
| Department C | 62 900 | ||
| 245 400 | |||
| Discount Received | 2 454 | ||
| Salaries and wages | 91 200 | ||
| Advertising | 2 307 | ||
| Sales: | Department A | 180 000 | |
| Department B | 138 000 | ||
| Department C | 82 000 | ||
| 400 000 | |||
| Depreciation | 4 200 | ||
| Opening Stock | Department A | 27 100 | |
| Department B | 21 410 | ||
| Department C | 17 060 | ||
| 65 570 | |||
| Administration and General Expenses | 19 800 | ||
| Closing Stock | Department A | 23 590 | |
| Department B | 15 360 | ||
| Department C | 18 200 | ||
| 57 150 | |||
Except as follows, expenses are to be apportioned equally between the departments:
- Delivery expenses – proportionate to sales.
- Commission – 2\dfrac{1}{2} per cent of sales.
- Salaries and wages; Insurance – in the proportion of 3:2:1.
- Discounts received – 1 per cent of purchases.
The solution to this question can be found here
To access more topics go to the Principles of Accounts Notes.
