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fi.e., Sales price x Cost price] Provision dept = Rs. 75 = Rs.50 66.67 100 Cosmetics dept = Rs.45 66.67 = Rs.30 100 4. Calculation

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fi.e., Sales price x Cost price] Provision dept = Rs. 75 = Rs.50 66.67 100 Cosmetics dept = Rs.45 66.67 = Rs.30 100 4. Calculation of actual sale proceeds of each department [Sale units x selling price) Provisions department = 900 units @ Rs. 75 each =Rs. 67,500 Cosmetic department = 2.100 units @ Rs.45 each = Rs. 94,500 5. Calculation of purchase of each department [units purchased x cost price] Provisions department = 1,000 units @ Rs.50 each = Rs.50,000 Cosmetics department = 2,000 units @ Rs.30 each = Rs.60,000 6. Valuation of opening stock at cost opening stock units x cost price] Provisions department = 400 units @ Rs. 50 each =Rs.20,000 Cosmetic department = 600 units @ Rs.30 each=Rs.18,000 7. Valuation of closing stock at cost (closing stock units x cost price] Provision department = 500 units @ Rs.50 each = Rs. 25,000 Cosmetic department = 500 units @ Rs.30 each = Rs. 15000 41 Rs. Illustration 5 From the following particulars given by Ms. Tins and toys, prepare a Departmental Trading and profit & loss account for their two departments. Tins department and Toys department. for the year ended 31" December 2009. Particulars Particulars Rs. Opening Stock: Toys 2,500 Packing Expenses (Toys) 300 Tins 7,500 Depreciation: Raw Materials 18,000 Factory equipment 1.600 Consumed (Tins) Building 800 Stores Consumed 4,500 Sales: Tins 45,000 Wages Tins 3.000 Toys 9,000 Toys 1.500 Closing Stock: Toys 3,000 Advertisement Tins 6,000 Office Expenses 2,400 750 Addition Information: 1. Toys are made out of end bits of raw materials used by Tins Department. The value of such material used during the year by Toys Department was Rs. 1,000. 2. Toy making does not require any equipment. ? Only 1/8 of the total area of the building was occupied by Toys Department

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