4. X, the proprietor of a departmental store, decided to calculate separate profits for his two departments
Question:
4.X, the proprietor of a departmental store, decided to calculate separate profits
for his two departments L and M for the month ending 31st January. Stock on
31st January could not be valued for certain unavoidable reasons, but his rate of
gross profit (calculated without reference to direct expenses) on sales for the two
departments are 40% and 30%.
The following figures are given:
Indirect expenses for the whole business containing five departments are
Rs. 10,800 which are to be charged in proportion to department sales except as
to1/6th, which is to be divided equally. Sales for remaining three departments were
Rs. 1,02,000.
Prepare a Statement showing profits for the two departments.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill