Principles of Accounting: Example to Departmental Accounting Solution

////Principles of Accounting: Example to Departmental Accounting Solution

Principles of Accounting: Example to Departmental Accounting Solution

ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts Example

OK Mart Hillside

Income Statement for the year ended 31 March 20×5

Department ADepartment BDepartment C
$$$$$$
Sales180 000138 00082 000
Less Cost of Sales
Opening Stock27 10021 41017 060
Add Purchases

101 300

81 200

62 900

128 400102 61079960
Less Closing Stock

(23 590)

(15 360)

(18 200)

(104 810)

(87 250)

(61760)

Gross Profit75 19050 75020 240
Add Other Income
Discount Received

1 013

812

629

76 20351 56220 869
Less Expenses
Rent and business rates3 1003 1003 100
Delivery expenses1 6201 242738
Commission4 5003 4502 050
Insurance600600600
Salaries and wages45 60030 40015 200
Advertising769769769
Depriciation1 4001 4001 400
Administration and General Expenses

6 600

6 600

6 600

(64 189)(47 561)(30 457)
Net Profit/(Net Loss)

12 014

4 001

(9 588)

NB We are not asked to prepare the combined accounts but this should be straightforward enough. Please see notes on Financial Statements if you need help in the area.

To access more topics go to the Principles of Accounts Notes.

By | 2018-02-13T08:44:38+00:00 February 13th, 2018|Notes, Ordinary Level Notes, Principles of Accounts Notes|0 Comments

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

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