J Horner is the proprietor of a shop selling paintings and ornaments. For the purposes of his financial statements he wishes the business to be divided into two departments:

Department A Paintings Department B Ornaments The following balances have been extracted from his nominal ledger at 31 August 2007:

Stocks at 31 August 2007 were valued at:
Department A £1,410 Department B £912 The proportion of the total floor area occupied by each department was:
Department A two-fifths Department B three-fifths Prepare J Horner’s departmental trading and profit and loss account for the year ending 31 August 2007, apportioning the costs, where necessary, to show the net profit or loss of each department.
The apportionment should be made by using the methods as shown:
Area – Fire insurance, Lighting and heating, Repairs, Telephone, Cleaning; Turnover – General office salaries, Accountancy, General office expenses.

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Dr Cr f Sales Department A 75,000 Sales Department B Stocks Department A, 1 September 2006 Stocks Department B, 1 September 2006 Purchases Department A 50,000 1,250 1,000 51,000 Purchases Department B 38,020 Wages of sales assistants Department A 7,200 Wages of sales assistants Department B Picture framing costs 6,800 300 General office salaries 13,200 Fire insurance - buildings 360 Lighting and heating 620 Repairs to premises Internal telephone Cleaning Accountancy charges General office expenses 175 30 180 1,490 510