Follow US ON FB
AIOU SOLVED ASSIGNMENT 1 CODE 444 ADVANCE ACCOUNTING
Departmental account: An accounting department provides accounting services and financial support to the organization it belongs to. The department records accounts payable and receivable, inventory, payroll, fixed assets and all other financial elements. The department’s accountants review the records of each department to determine the company’s financial position and any changes required to run the organization cost effectively.
ALLOCATION OF EXPENSES IN DEPARTMENTAL ACCOUNTING
The expenses which can be specially incurred for a particular departments like salary to salesman, can be charged directly to the department, but the expenses which could not be allocated precisely to a particular department may be divided among the different departments are as follows:-
SALES OF EACH DEPARTMENT:-
Salesman’s commission, discount allowed, bad debts, carriage outwards, advertisement, packing expenses, provision for discount on debtors, travelling salesman’s salary and commission.
PURCHASE OF EACH DEPARTMENT:-
Discount received, provision for discount on creditors, carriage inward, freight etc.
AREA OF FLOOR SPACES OF EACH DEPARTMENT:-
Rent, rates and taxes, repair and maintenance of building, insurance on building, air conditioning expenses, heating.
VALUE OF ASSETS IN EACH DEPARTMENT:-
Depreciation of machinery, repairs and maintenance of plant, insurance premium.
NUMBER OF WORKERS:-
Canteen expenses, labor welfare expenses, time keeping, personnel office, supervision.
Compensation to workers, holiday pay, provident fund contribution, group insurance premium.
NUMBER OF LIGHT POINTS:-
HORSE POWER OF MACHINE AND/OR PRODUCTION HOURS:-
TIME DEVOTED BY HIM FOR EACH DEPARTMENT:-Worker manager’s salary.
FOR MORE SOLVED ASSIGNMENTS : click here