2020 WAEC Accounts – Principles of Accounts Theory Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as…

Yallawa Stores Ltd has two departments. The following balances Were extracted from its books as at 31st December 2017.

Purchases: Department A    720,000
                   Department B   520,000
Rent and rates                       50,000
Commission                          55,000
Insurance                                5,000
Sales: Department A         1,500,000
           Department B         1,250,000
Discount received                124,000
Advertising                             20,000
Salaries and wages             250,000
Depreciation                          35,000
Administration and general expenses 50,000
Opening stock: Department A   150,000
                         Department B   100,000
CIosing stock: Department A     175,000
                       Department B     142,000

Additional information: Expenses are to be apportioned to the departments as follows
i. commission on the basis of sales:
ii. salaries and wages – 3:2 for Department A and B respectively
iii. discount received – 10% of purchases
iv. other expenses are to be apportioned equally.

You are required to prepare a Departmental Trading, Profit, and Loss Account for the year ended 31st December 2017.