Question 5 OR (a)

Departmental Trading Account (uniform gross-profit %)

10 marks

Time to write: About 20 minutes
Topic: Departmental accounts
Notes: Crux notes

Question

Question 5 OR (a) · 10 marks

Bhaskar Ltd. has three departments X, Y and Z. For the year ended 31 March 2025:

	X	Y	Z
Purchases (units)	12,000	24,000	36,000
Sales (units)	12,300	23,500	36,800
Selling price per unit (₹)	25	26	28
Closing stock (units)	900	1,500	1,600

Total purchases during the year were ₹15,45,600. Prepare the Departmental Trading Account of Bhaskar Ltd., on the basis that every department earns the same gross-profit percentage on its sales.

Reworded from the university paper: names and figures differ, the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.

Before you write

Read off the question and its marks

20 minfor 10 marks

Read from the question

Prepare the Departmental Trading AccountProper formats (heading, date, both sides): post the plain items, then each adjustment, and balance last.

Write it in this order

Read the data; tick every adjustment as you plan it 1 min
1 Deriving the uniform gross-profit rate 20% 4 marks 7 min
2 Departmental Trading Accounts each foots; GP = 20% of sales 4 marks 7 min
3 Opening/closing stock valued at cost per unit 2 marks 4 min
Check: every adjustment used, both sides agree, dates in 1 min

123

Final answer

Check your own figures against these.

Gross profit: X: ₹61,500, Y ₹1,22,200, Z ₹2,06,080
Total: ₹3,89,780 on total sales of ₹19,48,900: exactly 20% in each department and overall

Try it first. About 20 minutes for 10 marks. Write it out, then open the solution and check your figures against the final answer.

Solution

Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.

Step 1: the uniform gross-profit rate

If the gross-profit rate on sales is the same (say g) in every department, each department's cost per unit is its selling price × (1 − g). Total purchase value therefore equals (1 − g) × Σ(purchase units × selling price):

Σ(purchase units × selling price) = 12,000×25 + 24,000×26 + 36,000×28 = ₹19,32,000.
(1 − g) = 15,45,600 ÷ 19,32,000 = 0.80, so gross profit = 20% on turnover.

Cost per unit = selling price × 0.80 → X ₹20.00, Y ₹20.80, Z ₹22.40. (Check: 12,000×20 + 24,000×20.80 + 36,000×22.40 = ₹15,45,600, the given total.)

Step 2: opening stock (from the unit flow)

Opening units = Sales + Closing − Purchases → X 1,200, Y 1,000, Z 2,400 units. Stock is valued at cost, as in the DU text's departmental illustration, which states its closing stock "at cost". Valued at cost per unit: opening X ₹24,000, Y ₹20,800, Z ₹53,760; closing X ₹18,000, Y ₹31,200, Z ₹35,840.

Departmental Trading Account for the year ended 31 March 2025

The three departments share one set of books, so this is the joint-accounts method, under which a trading (and profit and loss) account is prepared to show each department's result.

Particulars	X ₹	Y ₹	Z ₹	Particulars	X ₹	Y ₹	Z ₹
To Opening stock	24,000	20,800	53,760	By Sales	3,07,500	6,11,000	10,30,400
To Purchases	2,40,000	4,99,200	8,06,400	By Closing stock	18,000	31,200	35,840
To Gross Profit c/d	61,500	1,22,200	2,06,080
	3,25,500	6,42,200	10,66,240		3,25,500	6,42,200	10,66,240

Result: Gross profit: X ₹61,500, Y ₹1,22,200, Z ₹2,06,080; total ₹3,89,780 on total sales of ₹19,48,900: exactly 20% in each department and overall.

Where the 10 marks sit

#	Component	Marks
1	Deriving the uniform gross-profit rate (20%)	4
2	Departmental Trading Accounts (each foots; GP = 20% of sales)	4
3	Opening/closing stock valued at cost per unit	2
	Total	10

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