Advanced Financial Accounting FIN-611 Mian Ahmad Farhan Lecture-9 Departmental Accounts

Departmental Accounts

Question Accounting information relating to the “FC” store is as Follow: Particulars Jewellery Hairdressing Clothing Opening stock (1/1/2008) 2,000 1,500 3,000 Purchases 11,000 15,000 Closing stock (31/12/2008) 2,500 4,000 Sales and work done 18,000 9,000 27,000

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

Solution & Working (In PDF format)

Trading Account 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 Less General expenses Net profit of the business xxx ---- ---

Obvious Just Ratio Obvious Just Ratio Area occupied Sales # of employees

Division of Expenses Identified expenses Obvious just ratio Given Ratio