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Zorluk: OrtaPreparation of Departmental Trading, Profit and Loss Accounts

Maclean Commercial Hub operates two departments, Department A and Department B. For the financial year ended 31 December 2025, the following information is extracted from their financial records:

- Gross Profit: Department A = ₦180,000; Department B = ₦120,000
- Floor area occupied: Department A = 100 sq. m; Department B = 400 sq. m
- Sales turnover: Department A = ₦600,000; Department B = ₦400,000
- Total Rent and Rates paid: ₦100,000
- Total Selling Expenses paid: ₦50,000

What is the Net Profit for Department A?

  1. ₦130,000Cevap
  2. B
    ₦90,000
  3. C
    ₦150,000
  4. D
    ₦230,000

Cevap

The Net Profit for Department A is ₦130,000.
To calculate the Net Profit for Department A, each indirect expense must be apportioned using its correct basis. Rent and rates relate to space and are apportioned by floor area (100/500×₦100,000=₦20,000100/500 \times ₦100,000 = ₦20,000). Selling expenses relate to revenue and are apportioned by sales turnover (₦600,000/₦1,000,000×₦50,000=₦30,000₦600,000/₦1,000,000 \times ₦50,000 = ₦30,000). Total expenses allocated to Department A equal ₦50,000. Subtracting this from Department A's Gross Profit of ₦180,000 yields a Net Profit of ₦130,000.

Adım Adım Çözüm

1
Calculate Department A's share of Rent and Rates
₦20,000
Rent is apportioned on the basis of floor space occupied: 100100+400×₦100,000=15×₦100,000=₦20,000\frac{100}{100 + 400} \times ₦100,000 = \frac{1}{5} \times ₦100,000 = ₦20,000.
2
Calculate Department A's share of Selling Expenses
₦30,000
Selling expenses are apportioned on the basis of sales turnover: ₦600,000₦600,000+₦400,000×₦50,000=35×₦50,000=₦30,000\frac{₦600,000}{₦600,000 + ₦400,000} \times ₦50,000 = \frac{3}{5} \times ₦50,000 = ₦30,000.
3
Deduct total expenses allocated to Department A from its Gross Profit
₦130,000
Total expenses for Department A = ₦20,000+₦30,000=₦50,000₦20,000 + ₦30,000 = ₦50,000. Net Profit = GrossProfit−TotalExpenses=₦180,000−₦50,000=₦130,000Gross Profit - Total Expenses = ₦180,000 - ₦50,000 = ₦130,000.

Anahtar Kavram

Departmental Expense Apportionment and Net Profit Determination
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Preparation of Departmental Trading, Profit and Loss Accounts

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