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QUESTION NO.3 Mr X runs a business which has two department. The following balance were extracted from his books on 30.6.2020: Items Dept A Dept

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QUESTION NO.3 Mr X runs a business which has two department. The following balance were extracted from his books on 30.6.2020: Items Dept A Dept B Rs 13000 1500 Opening stock on 12000 1.1.2020 Purchases 24520 Sales 86030 Closing stock 12100 Wages 22800 Return in 1030 Return out 520 36544 89070 13300 21200 4070 544 Common expenses Commission payable Salaries Advertising Rates Insurance Repairs Lighting heating 15100 2500 1450 400 800 2000 Salaries of 400 are outstanding, Rates 250 have been paid in advance and Insurance 80 is prepaid. Commission, salaries and advertising are to be charged to the departments in proportion on net(sales minus returns in); all other expenses are to be apportioned 1/4th to the department A and 3/4th to the department B. You are required to prepare departmental trading account

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