Page 67 - DMGT403_ACCOUNTING_FOR_MANAGERS

Accounting for Managers

Notes Local Taxes 1,000
Salary paid to salesmen 20,000
Commission charges paid 10,000
Legal charges paid 3,000
Bad debts 1,500
Advertising charges 25,000
Package charges 7,500
Discount allowed 3,000
Discount received 4,000
Dividend received 2,000
Rent received 1,000
Depreciation charges 10,000
Repairs and Maintenance 2,500
Interest on loans 1,500 500
Dr Profit and loss account for the year ended ...................................... Cr
Particulars Particulars
To Manager Salary 30,000 By Gross profit B/d 1,00,000
To Office lighting 5,000 By Discount received 4,000
To Office Rent 15,000 By Dividend received 2,000
To Salary paid salesman 20,000 By Rent received 1,000
To Commission charges 10,000 By Interest received 500
To Legal charges 3,000 By Net Loss c/d* 24,500
To Bad debts 1,500
To Advertising charges 25,000
To Package charges 7,500
To Depreciation charges 10,000
To Repairs and maintenance 2,500
To Interest on loan 1,500
To Local taxes 1000
1,32,000 1,32,000
* Net loss is the excess of the expenses total in the debit side 24,500 over the incomes total in the credit side of the profit and loss
account.

Task Calculate the cost of materials consumed from the following:

Opening Stock
Raw materials 4,500
Work in Progress 12,000
Finished Goods 14,800
Sales 50,000
Purchases during the year 24,500
Carriage inwards 500
Closing stock—raw materials 1,500
Work in Progress 4,800
Finished Goods 2,700
Hint: 28000

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