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WorksheetsDEPARTMENT AND BRANCH ACCOUNTING 11.5.21
Total questions: 15
Worksheet time: 9mins
The purpose of preparing a departmental profit and loss account for a firm is . . .
to show the relative financial performance of different sections of the firm.
to estimate the firm's.future cash requirements.
to ensure that all likely bad debts are provided for.
to ensure that discounts allowed by the firm do not exceed discounts received by it.
When preparing a departmental trading and profit and loss account, the best method of allocating expenses between departments is . . .
to allocate expenses to each department in proportion to the sales of that department.
to charge against each department those costs which are within its control.
to allocate expenses to each department in proportion to the purchases of that department.
None of the above.
Expenses which cannot be apportioned to department must be shown in the __________
Balance Sheet
Trading a/c
Profit and Loss a/c
Profit and loss appropriation a/c
Rent and rates paid are apportioned among the departments on the basis of
Sales
Space occupied
Purchase
Number of employees
The balance in the 'goods sent to branch ' account is transferred to
Branch account
Head office account
Profit and loss account
Trading or purchase account
In case of shortage,under stock and debtors system the profit element is debited to
Branch stock a/c
Branch Debtors a/c
Branch expenses a/c
Branch adjustments a/c
The objective of branch accounting is to know
Profit and loss
Profit and loss of each department
Profit and loss of head office
Profit and loss of manufacturing companies
The fixed asset account of a dependent branch is maintained by
Branch
Head office
Both head and branch office
Departmental store
Under the debtors system in branch a/c ,credit sales are
Debited to branch a/c
Credited to branch a/c
Debited to debtors a/c
Credited to debtors a/c
In case of shortage,under stock and debtors system the profit element is debited to
Branch stock a/c
Branch Debtors a/c
Branch expenses a/c
Branch adjustments a/c
under branch account, debtors system cash sales is shown in the _____________.
Debit
credit
Asset
none
Expenses which cannot be apportioned to department must be shown in the _____.
balance sheet.
Trading account
P&L Account
P & L Appropriation Account
When goods are transferred from one department to other department, they are called (a) .
The departmental accounting enables a business firm to maximize _________.
Profit
Loss
Asset
Cash
Dependent branch make _______.
Only cash sales
only credit sales
cash and credit sales.
installment sales.
