(a) State the purpose of department accounts
(b) State a basis of apportioning each of the following expenses to departments:
(i) rent;
(ii) salesmen commission;
(iii) supervisors salary;
(iv) carriage inwards.

(c) List four accounts prepared by a head office to control branch transactions.

OBSERVATION

A few candidates attempted this question but they performed well in ‘a’ and ‘c’ parts. However, they found it difficult to apportion the expenses in ‘b’ to departments.

The expected apportionment criteria are:
- Rent :- floor space occupied/area occupied
- Salesmen commission: - Sales/Turnover, number of articles sold.
- Supervisor’s salary: - No of employees, No of hours worked.
- Carriage inwards: - value of purchases/proportion of purchases