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Case study - departmental profit and loss statement

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    Tashika B.
    US
    Tashika B.

    What causes departmental profit and loss statement?

    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Noted.

    Alice B.
    GQ
    Alice B.

    More practical work will do me good the calculations seem simple but quite complicated.

    Morne V.
    ZA
    Morne V.

    Departmental profit and loss is preparedprepared to ascertain for profit by each department

    Sunday O.
    NG
    Sunday O.

    Departmental Profit and Loss statement

    Rodger B.
    ZM
    Rodger B.

    eish i finally understand all the entries.Mainly they are for the November month only.More practice and it will be easy potatoes.

    Odongo M.
    UG
    Odongo M.

    Accounting -> Case study - departmental profit and loss statement Case study - Departmental Profit and Loss statement Welcome to Media World. This business sells DVD players (DVDs) and Television sets (TVs). At the beginning of November Media World have the following assets and liabilities: Assets stock $6000 prepaid rent $1000 workshop equipment $36 000 land and buildings $180 000 Liabilities bank overdraft $10 000 accrued wages $700 loan $40 000 accumulated depreciation on workshop equipment is $3000 You have to determine capital at 1 November. Information Media World sells DVDs and TVs. Workshop equipment is only involved in repairing TVs, service costs are only for the DVDs Media World employs three sales staff, who spend two-thirds of their time selling DVDs and one-third selling TVs. Two other people work at repairing TVs and another person works in servicing. There are two staff members employed in the office the business has four cost centres: sales, workshop, office and finance each person employed by Media World is paid $100 per day and works a five day week. The prepaid and accrued expenses must be reversed for each month the calendar for November is shown below. Dates shown in bold are the days on which staff are paid. Staff do not work on Monday and Tuesday as Media World operates in a tourist area and these are quiet days. They do work on weekends workshop equipment is depreciated at 12% per annum on cost interest is paid annually in December. It is $1200 for the year on the Bank overdraft and $3600 for the year for the loan rent is $3000 per month and is allocated in equal proportions to sales, workshop and office advertising is allocated according to sales cash sales are 40% of total sales. Cash sales are $20 000 for the DVD players and $10 000 for TVs there is a mark up of 100% on all goods sold stock loss is $500 (all DVDs) bad debts are $1000 at the end of November prepaid rent is $600 you will have to calculate accrued wages at 30 November Other expenses include: advertising is $3000 service costs are $1000 cleaning $2000 View the text document for solution to Study case - Departmental Profit and Loss statement.

    Manish K.
    NP
    Manish K.

    Information is illustrative and understandable.

    Penelope M.
    US
    Penelope M.

    pretty much into the math part of it, with depreciation, calculations, loss/profit just balancing pretty much

    Adil N.
    MA
    Adil N.

    In a case study - What is a departmental profit and loss statement?

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