CLA-2-ACC.pptx - Departmental Income Statement P R E S E N T E D B Y NISCHAL PURI A S H M I TA K A F L E PUNAM SHAHI THAKURI S U P R I YA K A R M A C H

CLA-2-ACC.pptx - Departmental Income Statement P R E S E N...

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Departmental Income Statement P R E S E N T E D B Y: N I S C H A L P U R I A S H M I TA K A F L E P U N A M S H A H I T H A K U R I S U P R I YA K A R M A C H A RYA S H U S H I L S H A H V I S H A L T H A PA S U B I N S H A H I
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Departmental Income statement An income statement prepared by each department of an organization is departmental income statement. Measures the performance of each department. To find out the actual profitability or loss in each department. Helps managers to decide if the department should be continue, discontinue or eliminated.
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Steps to prepare the Departmental Income Statement 1. Accumulating revenues and direct expenses by department 2. Allocating indirect expenses across departments 3. Allocating service department expenses to operating departments 4. Preparing departmental income statements.
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Problem - 9 4A Vortex Company
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Particulars Allocation Dep. A Dep. B Salary Sales 23,040.00 12,960.00 Insurance Square Foot 4,200.00 1,800.00 Depreciation Square Foot 10,500.00 4,500.00 Office Expenses No. of Employees 30,000.00 20,000.00
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