Reference no: EM132617529

Abdur Rahim Book Shop has two departments i.e. Books Department and Periodical Department. Following balances have been extracted from his nominal accounts at Dec. 31 2019.

                                                Nominal Accounts Books Deptt.                   Periodical Deptt. Total

Sales Rs. 600 Thousands Rs. 400 Thousands Rs. 1,000 Thousands

Return inwards                                     6                                                   4

Purchases                                           400                                          320

Return outward                                        4                                            3

Wages (Sales Staff)                     72

Deliver expenses                         20

General office salaries                  30

Transport in expense                   40

Insurance of building                    25

Lighting and heating                     40

Cleaning and dusting                     10

General office expenses                 12

Discount allowed                          4

Accountancy and audit charges    10

Stocks (opening balance)                             10                                           8

Stocks (closing balance)                              12                                             6

Other information

Proportion of total area occupied                    4/5 th                                   1/5 th

Electric point                                                   10                                      5

No. of sales staff                                                 8                                       2

Proportion of building values                                       2                                       1

Required:

Problem 1: Prepare departmental and gerneral trading profit and loss account of Abdur Rahim Book Shop after distributing the overhead cost/ expenses between departments on the basis as you think suitable.