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Manga Munene is the proprietor of a retail business, which has two main departments, which sell hardware and electrical goods, respectively. He had previously prepared his...

      

Manga Munene is the proprietor of a retail business, which has two main departments, which
sell hardware and electrical goods, respectively. He had previously prepared his annual accounts
in such a way that the relative profitability of the two departments was not ascertainable, but
now he wishes to attempt to identify the profit attributable to each department in order that he
may pay a bonus to the more successful of the departmental managers. At 30 September 1994,
the balances in the books of the business were as follows:
mangamunene25502.png
mangamunene25502b.png
The general administrative expenses are primarily incurred in relation to the processing
of purchases and sales invoices.
Required:
(a) A schedule showing the basis on which you have apportioned the various expenses
between the two departments.
(b) The departmental and combined Trading and Profit and Loss Account for the year
ended 30 September 1994.
(c) Balance Sheet at 30 September 1994.

  

Answers


Mutiso
mangamunene25502i.png
mangamunene25502ii.png
munenecombined25527.png
Mutiso answered the question on November 25, 2018 at 14:08


Next: The following trial balance was extracted from the books of Hiza Ltd. as on 30 September 1995
Previous: The treasurer of Kay Club and Ray Society has prepared the following receipts and payments account for the year ended 31 December 1994:

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    uzeeltd24930.png
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