The main advantage of a departmental account is that its
Expenses are shared
Gross profit is computed
Net profit is computed
Balance sheet is obtained
Correct answer is B
The most significant advantages of departmental accounts are: Individual results of each department are known which helps to compare the performances among all the departments, i.e., the trading results can be compared. Departmental accounts help to understand or locate the success, failure, rates of profit, etc.
#416,000
#304,000
#240,000
#184,000
Correct answer is B
Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs and overheads.
360,000 - 56,000 = 304,000
#64,000
#120,000
#360,000
#480,000
Correct answer is B
selling price x production volume
120 x 4000 = 480,000
Total sales - cost of production
480,000 - 360,000 = 120,000 (profit)
In manufacturing accounts, finance expenses are charged to the
Departmental account
Trading accountÂ
Profit and loss account
Balance sheet
Correct answer is C
profit and loss account is an account in the books of an organization to which incomes and gains are credited and expenses and losses debited, so as to show the net profit or loss over a given period.
Which of the following is a debit item in the sales ledger control account?
Cheque reciepts
Dishonoured cheques
Discount allowed
Bills receivable
Correct answer is D
The sales ledger control account is used to monitor the amounts owed by customers to your business. it contains transactions related to all the trade receivables (all the debtors) in the business,
Bills receivables are drawn when a vendor or seller makes any credit sale to the business.