IV – Essay Questions (Answer Any Two Questions)

31)From the following balances extracted from the books of B.N Pai prepare departmental trading and general P&L account for the year ended 31st October 2011 and balance sheet as on that date after adjusting the unrealized departmental profits if any

		Dr	Cr
1. capital 2. land and building 3. furniture 4. opening stock 5. purchase 6. sales 7. general expenses 8. sundry debtors 9.sundry creditors 10.drawings 11.cash & bank	Dept A Dept B Dept A Dept B Dept A Dept B	125000 25000 30000 40000 1000000 1500000 1400000 200000 280000 1000000	300000 2000000 3200000 100000

Additional information

1) Closing stock dept A Rs 130000 including goods from dept B Rs 40000 at cost to dept A Dept B Rs 260000 including goods from dept A Rs 90000 at cost to Dept B

2) Sales of dept A includes transfer of goods to Dept B of the value of Rs 200000 and sales of dept B includes transfer of goods to dept A of the value of Rs. 300000 both at market price to transferor dept.

3) Opening stock of dept A & dept B includes goods of the value of Rs 10000 and Rs 15000 taken from Dept B & Dept A respectively at cost to transferor Dept.

4) Depreciation land & building by 5% and furniture by 10% p.a.                          

       

(2 × 4 = 8 Weightage)