Departmental and Branch Accounts

Kofi & Sons Enterprises operates two departments, Department P and Department Q. At the end of the trading period, total Rent and Rates incurred amounted to $\text{₦}200,000$. The records provide the following information:

- Floor area occupied: Department P = $1,200\text{ m}^2$; Department Q = $800\text{ m}^2$
- Sales turnover: Department P = $\text{₦}300,000$; Department Q = $\text{₦}700,000$

What is the correct amount of Rent and Rates to be apportioned to Department P?

Department P transfers goods to Department Q at cost plus $20\%$. At the end of the accounting year, Department Q held closing inventory valued at $\text{N}45,000$, of which $80\%$ represents goods transferred from Department P. If the Provision for Unrealized Profit Account had an opening balance of $\text{N}2,500$, what amount should be charged to the General Profit and Loss Account as the net provision for unrealized profit at year end?

Zaria Textiles Plc operates two departments: Weaving and Garment. The Weaving Department transfers fabric to the Garment Department at cost plus a mark-up of $25\%$. At the beginning of the year, the Provision for Unrealized Profit Account had a credit balance of $\text{N}4,000$. At the end of the year, the Garment Department held a total closing inventory valued at $\text{N}75,000$, of which $80\%$ represents transferred fabric from the Weaving Department. What is the net amount to be debited to the General Profit and Loss Account as an adjustment for provision for unrealized profit?

A head office invoices goods to its dependent branch at cost plus $25\%$. At the end of the financial year, the branch holds closing inventory valued at $\text{N}20,000$ at invoice price. What is the amount of unrealized profit (stock reserve) contained in the closing inventory?

Apex Enterprises operates two departments: Department X and Department Y. Department X transfers finished goods to Department Y at cost plus $33\frac{1}{3}\%$. At the end of the accounting year ended 31st December 2025, Department Y held closing inventory valued at $\text{N}40,000$. An inspection of inventory records reveals that $75\%$ of Department Y's closing inventory consists of goods transferred from Department X. Given that the opening provision for unrealized profit at 1st January 2025 was $\text{N}2,500$, what is the net amount (in Naira) to be debited to the General Profit and Loss Account for provision for unrealized profit for the year?

A head office transferred goods costing ₦80,000 to its dependent branch at an invoice price calculated using a mark-up of 25% on cost. What is the total invoice price of the goods sent to the branch?

Match each managerial decision or operational need on the left with its corresponding objective in departmental accounting on the right.

A retail store operates two departments, Department X and Department Y. For the year ended 31 December 2025, the following financial details are provided:

- Department X Gross Profit: ₦150,000
- Direct administrative expenses for Department X: ₦25,000
- Total Rent and Rates: ₦60,000 (apportioned based on floor space: Department X occupies $1,200\text{ m}^2$ and Department Y occupies $800\text{ m}^2$)
- Total Staff Salaries: ₦40,000 (apportioned based on staff headcount: Department X has 6 employees and Department Y has 4 employees)

What is the Net Profit of Department X in Naira (₦)?

Bello & Sons Enterprises operates two departments: Hardware and Stationery. For the accounting year ended 31 December 2025, the following information relates to the Hardware Department:

- Sales: $₦180,000$
- Opening Stock: $₦30,000$
- Purchases: $₦110,000$
- Closing Stock: $₦20,000$

The total administrative expenses for both departments combined amounted to $₦40,000$, which are apportioned between Hardware and Stationery in proportion to their sales turnover. The total sales turnover for the business was $₦300,000$.

What is the net profit of the Hardware Department?

Match each head office and independent branch reconciliation scenario on the left with its corresponding adjusting journal entry on the right.

Ebonyi Processing Company operates two departments: Milling and Bakery. During the financial year ended 31 December 2025, the Milling Department transferred flour to the Bakery Department at cost plus a mark-up of $33\frac{1}{3}\%$. At the close of the year, the Bakery Department held closing inventory valued at $\text{N}120,000$, of which $75\%$ represented flour transferred from the Milling Department. Calculate the amount of provision for unrealized profit on closing inventory to be recognized in the general profit and loss account.

Which of the following accounting practices uniquely characterizes an independent branch rather than a dependent branch?

Kano Head Office operates a dependent branch in Kaduna, supplying all goods at cost price. For the year ended 31 December 2025, the following records were extracted:

What is the net profit of the Kaduna branch for the year in Naira (₦)?

A commercial enterprise forwards inventory to its dependent branch at an invoice price that reflects a mark-up of $25\%$ on cost. At the close of the financial period, the branch holds a closing inventory valued at an invoice price of $\text{N}50,000$. What is the amount of unrealized profit to be credited to the Stock Reserve account?

Apex Trading Company sends goods to its Enugu branch invoiced at a selling price that includes a mark-up of $20\%$ on cost. At the end of the financial year, the branch stock account shows closing inventory valued at $\text{₦}42,000$ at invoice price. What is the required provision for unrealized profit to be credited to the Stock Reserve Account?

Ade and Sons Enterprises operates two departments, Department X and Department Y, which occupy floor areas of $1,200\text{ m}^2$ and $800\text{ m}^2$ respectively. If the total rent expense incurred by the business for the year is ₦$250,000$, what is the amount of rent to be apportioned to Department X?

Apex Commercial Enterprises operates three distinct commercial sections—Groceries, Clothing, and Hardware—all within the same premises. At the end of the financial year, the general manager reviews the enterprise's performance and decides to implement a full departmental accounting system rather than relying solely on the single combined trading and profit and loss account. Which of the following represents the fundamental accounting objective behind management's decision?

Match each departmental expense listed on the left with its most appropriate basis of apportionment on the right.

A multi-departmental retail business, Crescent Outfitters, prepares departmental accounts to improve management control. Match each objective of departmental accounting on the left with its corresponding operational application on the right.

Match each strategic management decision or accounting action of a multi-segment business on the left with the corresponding primary objective of departmental accounting on the right.