Departmental Accounting | All basics covered | Part 1 | B.COM/BBA/CA
Rajat Arora UG and Professional Courses・2 minutes read
The course on Departmental Accounting Inventories covers the basics of financial accounting, focusing on managing multiple departments within a business and assessing their performance through separate or joint accounts. The chapter includes creating department trading accounts, allocating expenses based on specific criteria, and distributing general expenses, provisions for stock, and final profit calculations in a detailed and proportional manner.
Insights
- Departmental Accounting involves managing multiple departments within a business, categorizing them as dependent or independent, and utilizing separate or joint accounts for financial assessment.
- The process of Departmental Accounting includes creating department trading accounts similar to regular trading accounts, allocating expenses based on specific criteria, and distributing costs such as power charges and insurance premiums based on factors like floor space and number of machines, ensuring detailed and proportional expense allocation.
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Recent questions
What is Departmental Accounting?
Departmental Accounting involves managing multiple departments within a business to assess their performance.
What are the types of departments in Departmental Accounting?
Two types of departments exist: dependent and independent.
How is Departmental Accounting different from regular accounting?
Departmental Accounting involves managing multiple departments within a business.
What is the purpose of creating a department trading account?
The chapter includes creating a department trading account similar to a trading account.
How are expenses allocated in Departmental Accounting?
Expenses such as power charges, repair maintenance, and insurance premiums are distributed according to specific factors.
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