STION $1$: DEPARTMENTAL ACCOUNTS

$5*213$

Young Designers has two departments:

Evening wear

Day wear

Use the information to do the following:

Draw up a departmental statement of profit or loss. Show all your workings in brackets, $5\mathrm{.}232$

Draw up and close the departmental purchases account.

$\backslash$table$[[,,,,],[$Revenue$,,$Total,Evening,Day$],[$Purchases$,,550000,250000,],[$Inventory $1$ March $2020,,,236000,168000],[$Inventory $28$ February $2021,,40000,60000,],[$Carriage out,,$50000,70000,],[$Salaries and wages,$330000,1500,2000,],[$Rent income,$30000,,,],[$Advertising$,40000,,,],[$Finance income,$6000,,,],[$Number of employees,,,,$],[$Floor space,,,$4,]]$

Additional information and adjustments:

Ms Young took an evening dress home for her personal use. The marked selling price was R$21000,$ Young Designers prices evening gowns at cost plus $200\%.$

Evening gown fabric purchased for R$5000$ was incorrectly debited to day wear. This must be corrected.

The rent income must be allocated in proportion to the floor space used by each department.

Advertising expenses must be allocated in proportion to the gross sales of each department.

Salaries must be allocated in proportion to the number of employees in each department.

Finance income to be shared in the ratio of $2$:$1$ between evening and day wear.

longleftarrow

$[30]$