The following balance as at 31.12.17 have been extracted from the books of a Company which...

Transcribed Image Text:

The following balance as at 31.12.17 have been extracted from the books of a Company which has two departments. N Particulars Opening stock Purchases Purchases return Sales Sales return Wages Miscellaneous charges Salaries General Expenses: Sundry debtors Sundry Creditors Plant and machinery Page 2/5 Dept A 35,000 2,40,000 5,000 6,43,000 6,000 1,90,000 45,000 20,000 Dept B 32,000 2,02,000 3,000 5,04,000 4,500 1,72,000 44,000 18,000 ISKOSK SPOKERARETA 1,92,000 1,94,000 2,62,000 Buildings 1,42,000 Furniture and fittings 60,000 Office and selling expenses 1,38,000 Cash in hand 10,000 Cash at bank 1,22,000 Capital 6,50,000 Plant and machinery is to be depreciated at 10%, buildings by 2%, furniture and fittings by 5%. The stock in hand as on 31.12.17 Department A - 36,000; Department B - 36,000.All unallocated expenditures are to be apportioned in the ratio of net sales of each department. Prepare Trading and Profit and Loss Account of the business as on 31.12.2017. The following balance as at 31.12.17 have been extracted from the books of a Company which has two departments. N Particulars Opening stock Purchases Purchases return Sales Sales return Wages Miscellaneous charges Salaries General Expenses: Sundry debtors Sundry Creditors Plant and machinery Page 2/5 Dept A 35,000 2,40,000 5,000 6,43,000 6,000 1,90,000 45,000 20,000 Dept B 32,000 2,02,000 3,000 5,04,000 4,500 1,72,000 44,000 18,000 ISKOSK SPOKERARETA 1,92,000 1,94,000 2,62,000 Buildings 1,42,000 Furniture and fittings 60,000 Office and selling expenses 1,38,000 Cash in hand 10,000 Cash at bank 1,22,000 Capital 6,50,000 Plant and machinery is to be depreciated at 10%, buildings by 2%, furniture and fittings by 5%. The stock in hand as on 31.12.17 Department A - 36,000; Department B - 36,000.All unallocated expenditures are to be apportioned in the ratio of net sales of each department. Prepare Trading and Profit and Loss Account of the business as on 31.12.2017.

Answer rating: 100% (QA)

To get the Trading and Profit and Loss Account we need to get the cost of goods sold for each department and then calculate the gross profit We also g... View the full answer