Departmental Accounts - Principles Of Accounting
Page 1 of 3
Principles Of Accounting Principles of Accounting Made Easy Home
Topics
Pricacy Policy ► Accounting
Search
Contact Us ► Retail Store
► Retail Business
► Retail Industry
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/ Departmental Accounts
Easy Trading Strategies
WealthDaily.com/Trading_Stocks First Rule: Don't Lose Money Second: Sell These 3 Stocks Now!
Departmental Trading Account It is also known as columnar Trading Account. Departmental Store: It is a large retail organization It has number of departments situated under one roof. Each department deals with only one particular types of goods
/ http://www.principlesofaccounting2.com/ Use of Departmental Accounts:
If trading A/c is prepared by adding all departments’ figures of purchases, sales etc, we won’t be able to know how much Gross profit (Loss) is made by each department.
If Gross Profit is calculated taking the figures separately, we can see how well or how badly each part of business is doing.
It is very useful for decision making
If one department is running in loss, it can be closed so that we can avoid loss and make a great Gross profit.
Or it can be replaced with some other business which is profitable.
Format of Departmental Trading Account
This is similar to Vertical format of Trading A/c. E.g.: S.Deen’s super store has two departments of clothing and Jewelry. S.Deen’s super store Trading A/c for the year ended ………………………
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/
http://principlesofaccounting2.com/topics/departmental-accounts/
8/12/2013
Departmental Accounts - Principles Of Accounting
Page 2 of 3
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/ Most of the times, departmental trading account will appear as follows as few items of trading A/c are given, Suppose opening stock, Purchases, sales and closing stock, S.Deen’s super store Trading A/c for the year ended ………………………
/ http://www.principlesofaccounting2.com/ Departmental Account Questions:
Q1.You are to draw up the Trading Account for S.Hasmath’s Departmental Store from the following information for the year ended 31 December 2005.
Departments Electronic
Furniture
Sales
5000
4000
Purchases
3000
2500
Stock (1.1.2005)
1200
1600
Stock(31.12.2005)
800
700
Return Inward
300
200
Return Outward
450
350
Q2.From the following information, you are to draw up the Trading Account for S.Vaseem’s Departmental Store for the year ended 31march 2006.
Stock:
01.04.2005
Clothing Department
16300
Sports Goods Department Electrical Department
31 03.2006. 15700
7500
6100
12400
9600
Sales for the year:
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/ Clothing Department
40900
Sports Goods Department
22500
Electrical Department
30200
http://principlesofaccounting2.com/topics/departmental-accounts/
8/12/2013
Departmental Accounts - Principles Of Accounting
Page 3 of 3
Purchase for the year: Clothing Department
33450
Sports Goods Department
11275
Electrical Department
16750
Question 03. From the following you are to draw up the trading account for John Keels’s Department Store for the year ended 30 June 20×6. Stocks: 1.7.2005
30.6.2006
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/ ( $)
( $)
Carpet Department
16,100
18,410
White Goods Department
37,916
35,119
Music Department
31,222
40,216
Sales of the year:
( $)
Carpet Department
62,400
White Goods Department
151,300
Music Department
94,820
Purchase for the year: Carpet Department
43,600
White Goods Department
118,260
Music Department
55,924
Incoming search terms:
departmental accounts departmental accounting
/ http://www.principlesofaccounting2.com/
departmental account departmental account format
Departmental a/c departmental accounting trading profit and loss departmental a/c format Departmental accounts(types)
departmental trading and profit and loss account format of departmental account
http://www.principlesofaccounting2.com
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/
http://principlesofaccounting2.com/topics/departmental-accounts/
8/12/2013