The following information relates to Leisure Zone Ltd for the year ended 31 December. The Company...
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The following information relates to Leisure Zone Ltd for the year ended 31 December. The Company uses a departmental accounting system which reports monthly accounts on its three departments - cinema, restaurants and bowling Inventory as at 1 January Sales Purchases Wages and payroll Repairs and maintenance. Inventory as at 31 December Head office costs General expenses Depreciation Canteen costs Cinemal $ ('000) Other expenses not directly associated any department Rent Light and heat Insurance- Administration and accounting Personnel 100 2,100 1,050 200 The floor area and number of employees are as follows Floor area (square meters) Number of employees 50 80 It is company policy to apportion expenses that cannot be attributed to any particular department as follows: Floor area-rent, light and heat and insurance Turnover - general expenses head office costs and depreciation Number of employees - administration and accounting, canteen and personnel Cinema Restaurant S ('000) 5,000 20 Required a) Prepare departmental accounts for each department based on the net profit method 120 3,000 1,200 150 40 105 Restaurant 6,000 15 Bowling $ ('000) 80 1200 700 130 20 65 800 150 200 80 200 120 50 10 20 Bowling 4,000 5 The following information relates to Leisure Zone Ltd for the year ended 31 December. The Company uses a departmental accounting system which reports monthly accounts on its three departments - cinema, restaurants and bowling Inventory as at 1 January Sales Purchases Wages and payroll Repairs and maintenance. Inventory as at 31 December Head office costs General expenses Depreciation Canteen costs Cinemal $ ('000) Other expenses not directly associated any department Rent Light and heat Insurance- Administration and accounting Personnel 100 2,100 1,050 200 The floor area and number of employees are as follows Floor area (square meters) Number of employees 50 80 It is company policy to apportion expenses that cannot be attributed to any particular department as follows: Floor area-rent, light and heat and insurance Turnover - general expenses head office costs and depreciation Number of employees - administration and accounting, canteen and personnel Cinema Restaurant S ('000) 5,000 20 Required a) Prepare departmental accounts for each department based on the net profit method 120 3,000 1,200 150 40 105 Restaurant 6,000 15 Bowling $ ('000) 80 1200 700 130 20 65 800 150 200 80 200 120 50 10 20 Bowling 4,000 5
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SOLUTION Leisure Zone Ltd Required Departmental accounts For the year ended 31st December Sal... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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