Advanced Accounting 2025

PGD

Roll No.

Maximum Marks - 100

Total No. of Questions - 6

Total No. of Printed Pages - 6

Time Allowed - 3 Hours

All questions are compulsory. Working notes should form part of the answer.

Make assumptions wherever necessary.

1. Daupal Ltd. is a retail store operating two departments. The company maintains a

memorandum stock account and memorandum mark-up account for each of the

departments. Supplies issued to the departments are debited to the memorandum stock

account of the department at cost plus the mark-up, and departmental sales are credited to

this account. The mark-up on supplies issued to the departments is credited to the mark

up account for the department. When it is necessary to reduce the selling price below the

normal selling price, i.e., cost plus mark-up, the reduction (mark-down) is entered in the

memorandum stock account and in the mark-up account. Department A has a mark-up of

33% on cost and Department B 50% on cost.

The following information has been extracted from the records of Daupal Ltd. for

the year ended 32nd Ashauh, 2082:

(Amount in Rs.)

Particular Department A Department B

Stock at 1st Shrawan, 2081 at cost 36,000 54,000

Purchase 243,000 285,000

Sales 315,000 427,500

> The stock of Department A at 1st Shrawan, 2082 includes goods on which the selling

price has been marked down by Rs. 765. These goods were sold in Shrawan, 2082 at

the reduced price.

> Certain goods purchased in FY 2081/82 for Rs. 4,050 for department A, were

transferred during the year to department B, and sold for Rs. 6,075. Purchase and sale

are recorded in the purchases of department A and the sales of department B

respectively, but no entries in respect of the transfer have been made.

> Goods purchased in FY 2081-82 were marked down as follows:

(Amount in Rs.)

Particular Department A Department B

Cost 12,000 31,500

Mark down 1,200 6,150

At the end of the year, there were some items in the stock of department B, which had

been marked down to Rs. 3,450. With this exception all goods marked down in

2081/82 were sold during the year at the reduced prices.

> During stock taking at 32nd Ashadh, 2082 goods which had cost Rs. 360 were found

to be missing in Department A. It was determined that the loss should be regarded as

irrecoverable.

> The closing stock in both the departments are to be valued at cost for the purpose of

the annual accounts.

Required: Prepare for each department for the year ended 32nd Ashadh, 2082:

(6+8+6=20)

a) a Trading Account,

b) a Memorandum Stock Account, and

c) a Memorandum Mark-up Account.

PGD

P.T.O