Question
QUESTION 3 Mulenga is in business running a Supermarket, which is divided into department selling Vegetables, Butchery and Bakery. The following balances have been
QUESTION 3 Mulenga is in business running a Supermarket, which is divided into department selling Vegetables, Butchery and Bakery. The following balances have been taken from his books of accounts on 31st December, 2015. K'000' Revenue Vegetables 675,000 Butchery 500,000 Bakery 300,000 Purchases Vegetables 900,000 Butchery 350,000 Bakery 225,000 Opening Inventory Vegetables 75,000 Butchery 60,000 Bakery 45,000 Salaries and Wages Vegetables 80,000 Butchery 35,000 Bakery 20,000 Lighting and Heating 25,000 Telephone Expenses 33,000 Motor Vehicles 66,000 Insurance 15,000 Fixtures and Fittings at cost 66,000 Office Expenses 19,000 Building at Cost 200,000 Additional information: 1. Closing inventory is valued as follows: Vegetables Butchery Bakery K60,000,000 K35,000,000 K21,000,000 2. Depreciation is charged at 10% on cost for fixtures and fittings and 15% on cost for buildings. Depreciation is to be apportioned equally between the three departments. 3. All other expenses are to be apportioned in the ratio of 2:1:1 between Vegetables, Butchery and Bakery. Required: Prepare Mulenga's departmental statement of comprehensive income for the year ended 31st December, 2015. (Total: 20 marks)
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