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4,12,000 2 31,563x12 36,311 48 Profit loaded by Deptt. Y Profit loaded by Deptt. X For transfer from Deptt. Y ( 31,553 - 6,311) 2,08,000
4,12,000 2 31,563x12 36,311 48 Profit loaded by Deptt. Y Profit loaded by Deptt. X For transfer from Deptt. Y ( 31,553 - 6,311) 2,08,000 2,60,000 5,048 For Direct Transfer 20,447 6.816 18.175 Illustration 6 Gram Udyog, a retail store, has two departments, "Khadi and Silks' for each of which stock account and memorandum mark up accounts are kept. All the goods supplied to each department are debited to the stock account at cost plus a 'mark up which together make-up the selling price of the goods and in the account of the sale proceeds of the goods are credited. The amount of mark-up is credited to the Departmental Mark up Account If the selling price of any goods is reduced below its normal selling price, the reduction 'marked down' is adjusted both in the Stock Account and the Departmental 'Mark up' Account. The rate 75,900 of Mark up' for Khadi Department is 33-1/3% of the cost and for Silks Department it is 50% of the cost The following figures have been taken from the books for the year ended December 31, 2012: Khadi Deptt. Silks Deptt. 7 Stock as on January 1st at cost 10.500 18,600 Purchases 93,400 Sales 95,600 1,25,000 (1) The stock of Khadi on January 1, 2012 included goods the selling price of which had been marked down by 1.260. These goods were sold during the year at the reduced prices. (2) Certain stock of of 76,900 purchased for the Khadi Departm were later the year transferred to the Silks department and sold for 10,350. As a result though cost of the goods is included in the Khadi Department the sale proceeds have been credited to the Silks Department (3) During the year 2012 to promote sales the goods were marked down as follows: Cost Marked down Khadi 5,600 360 Silk 10,000 2,000 All the goods marked down, were sold except Silks of the value of 75,000 marked down by 1,000. (4) At the time of stock-taking on December 31, 2012 it was discovered that Khadi cloth of the cost of 7390 was missing and it was decided that the amount be written off. You are required to prepare for both the departments for the year 2012 (a) The Memorandum Stock Account and (b) The Memorandum Mark up Account
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