J Spratt is the proprietor of a shop selling books, periodicals, newspapers and children’s games and toys. For the purposes of his accounts he wishes the business to be divided into two departments:

The proportion of the total floor area occupied by each department was:
Department A one-fifth Department B four-fifths PrepareJ Spratt’s trading and profit and loss account for the year ended 31 March 20X39, apportioning the costs, where necessary, to show the Department profit or loss. The apportionment should be made by using the methods as shown:
Area — Rates, Fire insurance, Lighting and air conditioning, Repairs, Telephone, Cleaning; Turnover — General office salaries, Accountancy, General office expenses.

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Department A Books, periodicals and newspapers. Department B Games, toys and fancy goods. The following balances have been extracted from his nominal ledger at 31 March 20X9: Dr f Sales Department A 15,000 Sales Department B 10,000 Stocks Department A, 1 April 20X8 250 Stocks Department B, 1 April 20X8 200 Purchases Department A 11,800 Purchases Department B 8,200 Wages of sales assistants Department A 1,000 Wages of sales assistants Department B 750 Newspaper delivery wages 150 General office salaries 750 Rates Fire insurance - buildings Lighting and air conditioning Repairs to premises Internal telephone 130 50 120 25 25 Cleaning 30 Accountancy and audit charges 120 General office expenses 60 Stocks at 31 March 20X9 were valued at: Department A 300 Department B 150