Department accounts

In this question they gave profits after deducting managerial commission but before adjustment of unrealised profits... Bcz that is NOT CORRECT, Reason: Manager commission will be calculate on Actual profits (.i.e which is earned during the year by it's own activities other than inter departmental profits) that's we will follow the below steps to find out Actual profits of the department... D1. D2. D3 1. profits( 100%-10%=90%) 90000. 60000. 45000 Then for making correction we need actual profits before commission then add back that commission portion.i.e.90%=90000, 90%=60000, 90%=45000. '''''â??'''''' 10%= ? 10%= ? 10%= ? 2.Add: Commi:.10000. 6667. 5000 3.After this adding back commission you will get profits before commission

Mahantesh Biradar

CA Final

★ 92K+

03-May-22 22:52

I think it may help you to understand

Sindhu H M

CA Inter

★ 2K+

03-May-22 22:27

Thank you i have understood

Thread Starter

Aravindh Kumar

CA Inter

★ 4K+

03-May-22 22:44