5.
You are required to prepare Departmental trading account of Dabur Ltd assuming that the rate of gross profit on sales is uniform in each case.
Explanation
To prepare a Departmental Trading Account for Dabur Ltd. Assuming a uniform gross profit rate, we can follow these steps:
1. Calculate the cost of goods sold (COGS) for each department:
For Department A:
- COGS = Opening Stock + Purchases – Closing Stock - COGS = 400 + 5000 – 700 = Rs. 4700
For Department B:
- COGS = Opening Stock + Purchases – Closing Stock - COGS = 600 + 10000 – 600 = Rs. 10600
For Department C:
- COGS = Opening Stock + Purchases – Closing Stock - COGS = 700 + 840000 – 700 = Rs. 840000
2. Calculate the Gross Profit for each department:
For Department A:
- Gross Profit = Sales – COGS
- Gross Profit = (15,300 * Rs. 40) – Rs. 4700 = Rs. 607,300
For Department B:
- Gross Profit = Sales – COGS
- Gross Profit = (0 * Selling Price) – Rs. 10600 = -Rs. 10600 (Assuming no sales)
For Department C:
- Gross Profit = Sales – COGS
- Gross Profit = (700 * Rs. 1200) – Rs. 840000 = Rs. 84,000
3. Calculate the Total Gross Profit for all departments:
Total Gross Profit = Gross Profit of Department A + Gross Profit of Department B + Gross Profit of Department C
Total Gross Profit = Rs. 607,300 – Rs. 10600 + Rs. 84,000 = Rs. 681,700
4. Prepare the Departmental Trading Account: |--------------------------|-----------|-----------|-----------|
| Particulars | Department A | Department B | Department C | |--------------------------|-------------|-------------|-------------|
| Sales | Rs. 613,300 | Rs. 0 | Rs. 840,000 |
| Cost of Goods Sold (COGS)| Rs. 4,700 | Rs. 10,600 | Rs. 840,000 | | Gross Profit | Rs. 607,300 | -Rs. 10,600 | Rs. 84,000 | |--------------------------|-------------|-------------|-------------|
| Total Gross Profit | Rs. 681,700 | |--------------------------|-------------|