Raj Singh runs a business which has two departments. The following balances were extracted from his books on 30.6.2018 :

You are required to prepare Departmental Trading and Profit and Loss Account for the six month ended on 30.6.2018, after taking into account the following information :

(a) (i) Salaries of ₹400 are outstanding

(ii) Rates ₹250 have been paid in advance; and

(iii) Insurance ₹80 is prepaid.

(b) Commission, salaries and advertising are to be charged to the departments in proportion to net turnover (sales minus returns in); all other expenses are to be apportioned 1/4th to department A and 3/4th to department B.

Transcribed Image Text:

Particulars Opening Stock on 1.1.2018 Purchases Sales Closing Stock Wages Returns in Returns out Dept. A (³) 12,000 24,520 86,030 12,100 22,800 1,030 520 Dept. B (²) 13,000 36,544 Salaries 89,070 Advertising 13,300 Rates 21,200 Insurance Common Expenses Commission payable 4,070 Repairs 544 Lighting and heating ₹ 1,500 15,100 2,500 1,450 400 800 2,000