Question on: JAMB Accounting - 2021
Use the information below to answer the question
Gross profit b/d Less: Salaries and wages Electricity Depreciation Net profit c/d |
Dept A | Dept B ₦ 4,000 1,200 ? ? 1,600 4,000 |
Total |
It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively.
What is the net profit made by department A?
Here's how to determine the net profit for Department A:
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Calculate the total expenses: The total expenses for both departments are Salaries and Wages (₦3,000), Electricity (₦2,000), and Depreciation (₦1,000). Therefore, the total expenses are ₦3,000 + ₦2,000 + ₦1,000 = ₦6,000.
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Apportion the expenses: Since expenses are allocated in a 60:40 ratio for Departments A and B, we can calculate Department A's share of the expenses: ₦6,000 * 60/100 = ₦3,600.
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