Practical Problems in Departmental Accounting

Amit Kumar

May 27, 2024

Table of Contents

Head Office Expenses

Restaurant ( 20,000/8)*5= 10,000
Banquet (20,000/8)*3= 6,000
Bar (20,000/8)*2= 4,000

Advertisement & Marketing Expenses

Restaurant ( 20,000/8)*5= 10,000
Banquet (20,000/8)*3= 6,000
Bar (20,000/8)*2= 4,000

Office Expense 15,000/3= 5,000 to be Debited to Each Department

Fixed Charges 12,000/3= 4,000 to be Debited to Ea ch Department

Interest Restaurant ( 5,000/5)*2= 2,000 Banquet (5,000/5)*2= 2,000 Bar (5,000/5)*1= 1,000

Gas & Electricity

Restaurant = (12,000/12)*5= 5,000
Coffee Shop= (12,000/12)*4= 4,000
Bar = (12,000/12)*3= 3,000

Advertisement & Marketing

Restaurant = (24,000/12)*5= 10,000
Coffee Shop= (24,000/12)*4= 8,000
Bar = (24,000/12)*3= 6,000

Head Office Expenses = 18,000/3 = 6,000 to be debited from each department

Fixed Charges= 12,000/3= 4,000 to be debited from each department

Interest

Restaurant = (10,000/5)*2= 4,000
Coffee Shop= (10,000/5)*2= 4,000
Bar = (10,000/5)*1= 2,000