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  Question Accounting information relating to the “FC” store is as Follow:   Jewellery  Hairdressing  Opening  stock (1/1/2008) 2,000 1,500 3,000 Purchases 11,000 3,000 15,000 Closing stock (31/12/2008) 3,000 2,500 4,000 Sales and work  done   18,000 9,000 27,000 Particulars  Clothing Question Wages & salaries  Rent Repair expenses  Air conditioning & lighting  General expenses   Rs. 13,8000           3,500           4,800 2,000 1,200 Solution & Working (In PDF format) Trading Account  Particulars  Sales  Less Cost of goods sold  Gross profit  A B Total  xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx ­­­­ ­­­ xxx xxx xxx xxx xxx xxx xxx xxx ­­­­ ­­­­ xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx 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  Obvious Just Ratio  Obvious Just Ratio Area occupied  Sales  # of employees   Division of Expenses  Identified expenses  Obvious just ratio Given Ratio .. .Departmental? ?Accounts? ? Question Accounting? ?information relating to the “FC” store is as Follow:   Jewellery  Hairdressing