Question 19
Departmental AccountsUse the information below to answer questions 19 and 20 (departmental profit and loss extract in the figure).
It is the tradition of the organization to apportion expenses in the proportion 60%:40% for S and T respectively.
What is the net profit made by department S?
- A.₦2,000
- B.₦3,000
- C.₦3,600
- D.₦2,400
Show the answer and explanation
Answer: D (₦2,400)
Explanation
S's electricity = 60% × 2,000 = ₦1,200. Net profit = 6,000 − 1,800 − 1,200 − 600 = ₦2,400.