From the following list of balances you are required to prepare a departmental income statement for the year ending 31 March 2011, in respect of the business carried on under the name of Jack’s Superstores:

Except as follows, expenses are to be apportioned equally between the departments. Delivery expenses – proportionate to sales. Commission – 21 /2 per cent of sales. Salaries and wages; Insurance – in the proportion of 3:2:1. Discounts received – 1 per cent of purchases.

Transcribed Image Text:

Rent and business rates Delivery expenses Commission Insurance Purchases: Discounts received Salaries and wages Advertising Sales: Depreciation Opening inventory: Dept. A ABU Dept. ABU Dept. A B Administration and general expenses Closing inventory: Dept. A ABU 101,300 81,200 62,900 180,000 138,000 82,000 27,100 21,410 17,060 23,590 15,360 18,200 9,300 3,600 10,000 1,800 245,400 2,454 91,200 2,307 400,000 4,200 65,570 19,800 57,150