Question

- X, Rs. 8,850; Y, Rs. 120).
V5. The directors of Anurag Textiles Ltd. want to ascertain separately the net profit of 'A', 'B' and C
departments for the six months ended June 30, 2011. On this day it was not practicable to take stock but an
adequate system of departmental accounting is in use and the usual rates of gross profit for the departments
concerned (without charging direct expenses) are 20%, 30% and 40% on turnover. Indirect expenses are
charged in proportion to departmental turnover.
A (Rs.) B (Rs.) C (Rs.)
Stock on 1-1-2011
3,000
7,000
6,000
Purchases
4,700
6,500
7,000
Sales
6.000
10.000
12,000
Direct Expenses
850
1.450 2,050
The total indirect expenses for the period (including those relating to other departments) were Rs. 4,200
on total sales of Rs. 84,000.
Prepare a statement for the directors. Also make Stock Reserve of 10% for each department on the
estimated value of stock on June 30, 2011.
(Answer: Closing Stock: A Rs. 2,900, B Rs. 6,500 and C Rs. 5,800; Net Loss A Rs. 240, Net Profit:B Rs.
200, and C Rs. 1,570)​

Answer 1

Answer:

40 is the correct answer

Answer 2

Explanation:

answer

directorsdirectors of the anurag textile limited want to ascertain the net profit of a f b c departmental for 6 month ended June 30 2011