- The firm AB & Co. has two departments cloth and tailoring. Tailoring department gets all its requirements of cloth from the cloth department at the usual selling price. From the following particulars prepare departmental trading and profit and loss account for the year ended 31st March, 2017: Particulars Cloth Tailoring Department() Department() Opening Stock 60000 8000 Purchases 340000 5000 Raw materials transferred to Manufacturing Department 50000 Sales 400000 80000 Manufacturing Expenses 12000 Selling Expenses 5000 2000 Closing Stock 100000 15000 The stock in tailoring department may be assumed to consist 80% cloth and 20% other expenses. General expenses of the business for the year came to *23,000. In 2016-17 the cloth department earned a gross profit of 30% on sales