Question

From the following data, prepare Departmental Trading and Profit and Loss Account and
thereafter the combined Income Account revealing the concern's true results for the year
ended 31st December, 2014.
Departments
А
B
₹
Stock (January 1)
40,000
Purchases from outside
2,00,000
20,000
Wages
10,000
1,000
Transfer of goods from Department A
50,000
Stock (December 31) at cost to the Department
30,000
10,000
Sales to outsiders
2,00.000
71,000
B's entire stock represents
goods from Department A which
transfers them 25% above
its cost. Administrative and selling expenses amount to 15,000
which are to be allocated
between departments A and B in the
ratio of 4 : 1 respectively.​

Answer 1

Answer:

Loss Account and

thereafter the combined Income Account revealing the concern's true results for the year

ended 31st December, 2014.

Departments

А

B

₹

Stock (January 1)

40,000

Purchases from outside

2,00,000

20,000

Wages

10,000

1,000