15.1 The following information applies to Supreme Hotels Ltd for the year ended 31 December. The Company operats a system of departmental accounting where the business is divided into three departments - accomodation, restaurant, and bar. $ Sales Accommodation 500,000 Restaurant 250,000 Bar 200,000 Purchases Restaurant 120,000 Bar 90,000 Opening inventory Restaurant 4,000 Bar 3,000 Wages and salaries Accommodation 117,500 Restaurant 80,120 Bar 32,500 Repairs and replacements Accommodation 29,500 Restaurant Bar 14,500 6,000 Electricity and power 45,000 Rent and rates 122,000 Depreciation Postage and telephone Advertising Laundry and cleaning Administration The following additional information is available 1. Expenses that cannot be apportioned to particular departments are apportioned as follow: 60,000 17,500 45,000 9,000 70,000 Electricity and Power Accommodation Restaurant Bar 60% 35% Rent, rates and depreciation are apportioned on the basis of floor space occupied as follows: Rent, rates and depreciation Accommodation Restaurant Bar 5% 6,000 square feet 3,000 square feet 1,000 square feet All other expenses are apportioned on the basis of turnover. 2. Inventory as at 31 December Required Restaurant Bar 3,500 2,000 a) Prepare a departmental income statement for the year ended 31 December based on the net profit method