Advanced financial accounting - Lecture 9: Departmental accounts

Advanced financial accounting - Lecture 9: Departmental accounts. The main topics covered in this chapter include: departmental accounts; trading account; obvious just ratio; identified expenses; given ratio;... Please refer to the lecture for details!

Advanced Financial 

Accounting

FIN­611  

Mian Ahmad Farhan 

Lecture­9 Departmental Accounts  

Departmental Accounts 

Accounting information relating to the  “FC” store is as

Follow:

Particulars Jewellery  Hairdressing  Clothing

Opening  stock

(1/1/2008)

Closing stock

(31/12/2008)

Sales and work 

done  

Wages & salaries   Rs. 13,8000 Rent       3,500 Repair expenses        4,800 Air conditioning & lighting  2,000 General expenses  1,200

Question

Solution & Working (In PDF format)

Particulars  A B Total 

Sales 

Less Cost of goods sold 

Gross profit 

Less Operating expenses 

Salaries & Wages 

Rent, rates & taxes

Repair & renewal

Lighting & heating

Profit from operations  

Add Other incomes 

Profit before tax

Less Income tax 

Net profit/Profit after tax 

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Obvious Just Ratio

Area occupied  Sales  # of employees  

1. Identified expenses 

2. Obvious just ratio

3. Given Ratio