Departmental Account: Trading and P&L Account and General P&L Account

The video tutorial covers the preparation of departmental trading and profit and loss accounts, along with a general profit and loss account for Diva Corporation. It explains the allocation of expenses and adjustments, such as prepaid advertising and outstanding rent, across two departments: books and stationery. The tutorial also discusses the importance of working notes and the allocation of common expenses to the general PNL account.

What is the significance of preparing a general profit and loss account?

Explain the treatment of interest on bank loans in the departmental accounts.

What adjustments are made for audit fees in the context of departmental accounts?

How are the closing stocks for each department treated in the accounts?