Question

2. Reliance retail store wishes to ascertain the net profit of the Express Avenue, Phoenix
and VR departments separately for the three months ended 31st March 2020. It is found
impracticable actually to take stock on that date, but an adequate system of
departmental accounting is in use, and the normal rates of gross profit for the three
departments concerned are respectively 40%, 30% and 20% on turnover before
charging the direct expenses. The indirect expenses are charged in proportion to
departmental tumover.
The following are the figures for the departments
Particulars
X
Y
Z
Opening Stock
2.00.000
2,50.000
1.50,000
Purchases
3.00.000
1,60.000
1.25.000
Sales
7.00.000
4.75,000
4,25,000
Direct Expenses
1.80.000
1.00.000
75,000
The total indirect expenses for the period (including those relating to other departments)
were Rs. 12,16,000 on the total turnover of Rs. 32,00,000. Prepare a statement showing
the approximate net profit, making a stock
reserve of 10% for each department on the
estimated value on 31-3-2020​

Answer 1

Answer:

lgcgjcgjkcjhxhclyjcijfkccbklbb