Departmental and Branch Accounts

Kemi & Sons Enterprises operates three departments: Department X, Department Y, and Department Z. For the year ended 31st December 2025, the business incurred a total electricity bill of $₦240,000$. The electricity expense is to be apportioned among the departments based on the number of light points installed in each department. Department X has 15 light points, Department Y has 25 light points, and Department Z has 20 light points. What is the amount of electricity expense to be apportioned to Department Y?

Kwara Furniture Enterprise operates two departments: Timber Department and Assembly Department. The Timber Department transfers processed wood to the Assembly Department at cost plus a $25\%$ mark-up. On 1 January 2025, the Assembly Department held opening stock valued at $\text{N}50,000$, of which $80\%$ represented transferred wood from the Timber Department. On 31 December 2025, the Assembly Department's closing stock was valued at $\text{N}70,000$, of which $75\%$ consisted of transferred wood. What is the net increase in the provision for unrealized profit to be debited to the General Profit and Loss Account for the year ended 31 December 2025?

Delta Enterprises operates two departments: Department P and Department Q. Department P transfers goods to Department Q at cost plus a mark-up of $25\%$. At the end of the financial year, Department Q's total closing stock was valued at $\text{N}90,000$, of which $\text{N}60,000$ represents goods transferred from Department P. The provision for unrealized profit brought forward from the previous year was $\text{N}7,000$. What amount should be charged to the General Profit and Loss Account as the net provision for unrealized profit?

In departmental accounting, various operational overheads are shared among departments using equitable criteria. Match each expense item listed on the left with its standard basis of apportionment on the right.

Apex Maritime Enterprises operates three operational units—Freight Forwarding, Warehousing, and Marine Insurance—under a single facility. Match each objective of preparing departmental accounts on the left with its corresponding management action or decision on the right.

A commercial enterprise operates several regional outlets. Each outlet buys inventory autonomously from local suppliers, maintains a complete set of double-entry ledgers, and extracts its own trial balance at the close of the financial period. Which accounting treatment correctly reflects the financial relationship between the head office and these regional outlets?

A retail enterprise operates two outlets, Branch X and Branch Y. Branch X receives all inventory directly from head office, remits all revenue daily to the head office central bank account, and relies entirely on head office to maintain its accounting records. Branch Y purchases inventory from external local suppliers on credit, maintains its own complete double-entry ledger system, and extracts an annual trial balance. Which of the following accounting features correctly distinguishes Branch X from Branch Y?

Danladi Commercial Enterprises operates two departments: Restaurant and Bakery. For the year ended 31 December 2025, the following financial details were extracted for the Restaurant department:

- Opening stock: $₦15,000$
- Purchases: $₦85,000$
- Sales: $₦150,000$
- Closing stock: $₦20,000$
- Direct departmental expenses: $₦8,000$

Total rent and rates for the entire business amounted to $₦24,000$, which is to be apportioned between the Restaurant and Bakery departments in the ratio of floor space occupied ($600\text{ m}^2$ and $400\text{ m}^2$, respectively).

What is the net profit of the Restaurant department for the year ended 31 December 2025?

Match each accounting characteristic on the left with its corresponding branch operational practice on the right.

Ibadan Head Office operates a dependent branch in Oyo, invoicing all goods at cost price. For the year ended 31 December 2025, the branch transactions showed:

What is the net profit earned by the branch for the year ended 31 December 2025?

Which of the following operational practices distinguishes an independent branch from a dependent branch?

Zaria Enterprises operates two departments: Hardware and Softlines. For the year ended 31 December 2025, total administrative salaries of ₦120,000 are to be apportioned based on floor space occupied. Hardware occupies $800\text{ m}^2$ and Softlines occupies $400\text{ m}^2$. If the Softlines department recorded a gross profit of ₦250,000 and direct departmental expenses of ₦45,000, what is the net profit of the Softlines department in Naira?

Enugu Textile Company operates two departments: Weaving Department and Tailoring Department. During the year ended 31 December 2025, the Weaving Department transferred fabric to the Tailoring Department at a transfer price based on cost plus a $25\%$ mark-up. At the end of the year, the Tailoring Department had a closing stock valued at $\text{N}20,000$, of which $60\%$ comprised fabric transferred from the Weaving Department. What is the provision for unrealized profit required on the closing stock at the end of the year?

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?

Match each branch accounting characteristic or operational procedure on the left with its corresponding branch classification and accounting treatment on the right.

Unlike a dependent branch, an independent branch maintains its own complete set of accounting records and extracts a trial balance at the end of the financial period.

Enugu Head Office operates a dependent branch in Aba, supplying all goods at cost price. For the year ended 31 December 2025, the following details were extracted from the books:

What is the net profit earned by the Aba branch for the year ended 31 December 2025?

An auditing firm is examining the accounting records of a commercial enterprise operating two regional divisions. Division A maintains a complete set of double-entry accounting books, extracts its own trial balance at year-end, and maintains a reciprocal Head Office Account. Division B forwards all operational vouchers and daily cash receipts directly to head office, where all ledger postings and profit computations are performed centrally. Which statement accurately describes the accounting procedure required to incorporate Division A's financial records into the overall head office financial statements?

Calabar Head Office operates a dependent branch in Uyo, invoicing all goods at cost price. For the year ended 31 December 2025, the following records were extracted from the branch accounting books:

Based on the information provided, what is the net profit earned by the Uyo branch for the year ended 31 December 2025?

Calabar Head Office operates a dependent branch in Uyo, supplying all goods at cost price. For the financial year ended 31 December 2025, the branch recorded the following transactions:

- Opening inventory: ₦15,000
- Goods sent to branch: ₦180,000
- Goods returned to head office: ₦10,000
- Total sales: ₦210,000
- Operating expenses paid by head office: ₦25,000
- Closing inventory: ₦20,000

What is the net profit earned by the Uyo branch for the year?