F.Y.

A/F – Financial Accounting – Problems compiled 2025-26

Mahatma Education Society’s

Pillai College of Arts, Commerce & Science
(Autonomous)
Affiliated to University of

Mumbai New Panvel

F.Y.B.COM.ACCOUNTING & FINANCE -

SEMESTER I

FINANCIAL ACCOUNTING I
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

UNIT 3

DEPARTMENTAL ACCOUNTS

ALLOCATION OF INDIRECT EXPENSES:

NO Expenses to be allocated Basis of Allocation

.

1 Freight inward, octroi etc. Floor area of each department

2 Rent, taxes, repairs of building Purchases of each department

3 Lighting No. of points in each department

4 Power Horse power of equipments installed in each

department

5 Depreciation, repairs Value of asset in each department

6 Insurance (a) Value of asset in each department

(a) Assets (b) Value of stock in each department
(b) Stocks (c) No. of Workers/Wages of each dept
(c) Workmens compensation

7 Staff welfare No. of workers in each department

8 Contribution to P.F./ESIS Wages of each department

9 Costs of Stores department Material consumed by each department

10 Costs of Personnel department No. of employees in each department

11 Costs of Repairs workshop Hours worked at each department

12 Costs of Canteen Wages/No. of workers in each department

13 Production/Factory expenses (1) Material consumed by each department

(2) Wages of each department
(3) Machine Hours of each department
(4) Labour Hours of each department
(5) Quantity produced by each department

14 Selling & Distribution expenses (1) Sales of each department

(2) Units/Kg. sold by each department
(3) Units/Kg. sent by each department
(4) Units/Kg. stored by each department

15 Administrative/Office expenses (1) Sales of each department

(2) Salaries of each department
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Problem 1:
From the following particulars, you are required to prepare Departmental Profit and Loss
Account for Departments A and B
Particulars Department A (Rs.) Department B (Rs.)
Opening Stock 60,000 90,000
Purchases 3,60,000 5,40,000
Sales 6,00,000 8,00,000
Closing Stock 20,000 80,000
Salaries 25,000 30,000
Total
Advertising 28,000
Rent 20,000
General Expenses 60,000
Advertising expenses should be apportioned in the ratio of sales, Rent equally and General
Expenses in the ratio of 2:3 between Departments A & B

Problem 2:
Rational Departmental Stores has prepared the following Trading and Profit and Loss Account
for the year ended 31st March 2024.
Particulars Rs. Particulars Rs.
To Opening Stock By Sales
Dept H 45,000 Dept H 3,02,600
Dept M 60,000 Dept M 4,53,900
Dept T 27,800 Dept T 1,51,300
To Purchases By Closing Stock
Dept H 2,24,000 Dept H 35,000
Dept M 3,55,000 Dept M 64,000
Dept T 1,54,000 Dept T 75,000
To Salaries 60,000
To Rent/Taxes 45,000
To Discount 12,000
To Advertisement 34,500
To Trade Expenses 9,000
To Depreciation 15,000
To Electricity 18,300
To Carriage Outward 6,600
To Net Profit 15,600
10,81,800 10,81,800
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Prepare Departmental Trading and Profit and Loss Account for the year ended 31st March 2024
after considering the following data:
1) Rent/Taxes to allocate in the ratio of area occupied which was 1:2:1 respectively.
2) Depreciation to be charged equally.
3) Of the 2 salesman employed, one worked in Dept M alone. The other works in Dept H
and T. His salary be allocated equally between Dept H and T. Salary of each salesman is
Rs. 2,500 p.m.
4) All other expenses except those mentioned in item 1) to 3) above, be allocated in the
ration of sales of the respective departments.

Problem 3:
Mr. Ashish is the proprietor of shop selling books and toys. For the purpose of his accounts, he
wishes the business to be divided into two departments – Department A: Books and Department
B: Toys. The following balances have been extracted from his books as on 31st March 2024.
Particulars Dr. Rs. Cr. Rs.
Sales Department A 15,000
Sales Department B 10,000
Opening Stock Department A 250
Opening Stock Department B 200
Purchases Department A 11,800
Purchases Department B 8,200
Salaries of Sales Assistants:
Department A 1,000
Department B 750
Books Delivery Wages 150
Office Salaries 750
Rates 130
Fire Insurance : Building 50
Lighting and Heating 120
Repairs to Premises 25
Telephone 25
Cleaning 30
Carriage Outward 120
Office Expenses 60
Closing Stock at 31 March, 2024 was valued at:
st

Department A Rs. 300 and Department B Rs. 150

The proportion of the total floor area occupied by each department was:
Department A: One – fifth, Department B : Four-fifth
Prepare Trading and Profit and Loss Account for the year ended 31st March 2024, apportioning
the overhead expenses, where necessary to show the Departmental Profit or Loss.
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Problem 4:
Prepare Departmental Trading and Profit and Loss Account and General Profit and Loss Account
form the following information:
Particulars Dept. A Dept. B Dept. C Total
Purchases 90,000 60,000 30,000
Sales 1,60,000 1,28,000 64,000
Wages 30,000 24,000 20,000
Closing Stock 44,000 32,000 28,000
Salaries 13,000 7,000 9,000
Rent 7,000
Insurance 4,700
Motor Van Expenses 4,400
Advertising 6,600
Traveling Exp. 3,300
Carriage Inwards 12,000
Discount Received 3,600
Bad Debts 1,100
Audit Fees 1,800
Discount Allowed 2,200
Additional Information:
1) There was no Opening Stock.
2) The floor space occupied by the three departments A, B and C in the ratio of 3:2:2
3) The motor van expenses are to be divided equally between departments B and C
4) The insurance premium is on a comprehensive policy and cannot be allocated.

Problem 5:
Following figures are extracted from the books of Chandrama Super Market, Pune having three
departments namely Department X, Department Y and Department Z for the year ending 31st
March 2025.
Particulars Department X Department Y Department Z

Stock of Good on 1st 42,500 35,620 43,560

April 2024

Stock of Good on 31st 93,450 99,230 53,420

March 2025

Purchases 2,35,680 3,43,260 4,12,610

Sales 2,62,450 3,91,200 5,24,130

Return Inward 2,450 1,200 4,130

 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Return Outward 5,680 3,260 2,610

Wages 7,650 8,250 3,240

Additional Information:

No. of Employees 2 3 5

Area Occupied 500 sp.ft. 800 sq.ft. 200 sq.ft.

Expenses incurred during the year:

Rent Rs. 15,000
Salaries Rs. 26,800
Office Expenses Rs. 18,000
Printing and Stationary Rs. 6,000
Advertisement Rs. 18,000
Discount received Rs. 9,800
Discount allowed Rs. 4,500
You are required to prepare departmental trading and profit and loss accounts in columnar form
of Chandrama SuperMarket for the year ended 31st March 2025 allocating all the expenses on
suitable basis among the different departments.

Problem 6:
Winter is a departmental store having three departments X, Y and Z. The manager of each
department is entitled to a commission of 10% of the net profit of the department besides their
annual salary of Rs. 3,000 each. The information regarding three departments for the year ended
31st March 2024 given below.

Particulars X Rs. Y Rs. Z Rs.

Opening Stock 72,000 48,000 40,000

Purchases 2,64,000 1,76,000 88,000

Debtors at the end 15,000 10,000 10,000

Sales 3,60,000 2,70,000 1,80,000

Closing Stock 90,000 35,000 42,000
Floor space occupied 3,000 2,500 2,000
by each department
(sq.ft)
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Number of 25 20 15
employees in each
department

The balance of other revenue items in the books for the year and the basis of their allocation
amongst three departments are given below.

Items Amount Basis

Carriage Inward 6,000 Purchases

Carriage Outward 4,500 Turnover

Salaries including Managers 81,000 No. of Employees

salaries

Discount Allowed 2,250 Turnover

Discount Received 1,800 Purchases

Rent, Rates and Taxes 7,500 Floor Space Occupied

Depreciation on Furniture 1,500 Equal
Advertisement 5,400 Turnover

Assets and Liabilities on 31st March 2019 were as follows.

Particulars Debit (Rs.) Credit (Rs.)

Capital - 3,00,000
Goodwill 1,00,000 -

Bills Payable - 12,100

Bills Receivable 42,500 -

Furniture 13,500 -
Sundry Creditors - 27,000
Cash in hand 1,750 -
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Cash at Bank 1,62,000 -

You are required to prepare Trading Account and Profit and Loss Account for the year ended
31st March 2024 after providing for provision for Bad Debts at 5% and Balance sheet as on that
date.

Problem No. 7
Following figures are extracted from the books of Veer Ltd. Prepare Departmental Trading and
Profit and Loss Account for the year ended 31st December 2024 in column form.of the three
departments allocating the expenses indicating the basis on which they are allocated.

Particulars Dept A Dept B Dept C

Purchases 2,00,000 3,00,000 8,00,000
Return Outwards 20,000 10,000 30,000

Sales 6,10,000 12,20,000 18,30,000

Return Inwards 10,000 20,000 30,000

Wages 40,000 60,000 80,000

Stock on 1/1/2024 50,000 70,000 10,000
Stock on 31/12/2024 80,000 50,000 40,000

1) Goods transferred from Department A to Department B Rs. 10,000 and to Department C

Rs. 20,000.
2) Goods transferred from Department B to Department A Rs. 5,000 and to Department C
Rs. 10,000.
3) Goods transferred from Department C to Department A Rs. 7,000 and to Department B
Rs. 9,000.
4) Following expenses are to be allocated equally:
Telephone charges Rs. 3,000
Insurance charges Rs. 6,000
Office Expenses Rs. 9,000
5) Rent Rs. 24,000 to be divided in proportion of space occupied: Department A - ¼,
Department B ¼ and Department C ½.
6) Other expenses were: Discount allowed Rs. 18,000 and Bad debts Rs. 15,000
 F.Y.A/F – Financial Accounting – Problems compiled 2025-26

Problem 8:
From the following data, prepare Departmental Trading and Profit and Loss Account for the year
ended 31st December 2024
Particulars Department A Department B
Stock on 1st January 40,000 -
Purchase from outside 2,00,000 20,000
Sales to outside 2,00,000 71,000
Wages 10,000 1,000
Transfer of goods from -- 50,000
Department A
Stock on 31st at cost to the 30,000 10,000
Department

B’s entire stock represents goods from Department A which transfers them at 25% above its cost.
Administrative and selling expenses amount to Rs. 15,000 which are to be allocated between A
and B in the ratio of 4:1 respectively.