WAEC Financial Accounting 1992 Question 20

Question 20

Departmental Accounts

Nagode (Nig.) Ltd. has three departments A, B and C. You are given the following information:
(i) Rent for the year: ₦3,000
(ii) Selling and distribution expenses: ₦1,800
(iii) Department | Turnover | Floor space in square metres
A | ₦40,000 | 120
B | ₦60,000 | 80
C | ₦80,000 | 100

How much rent is apportioned to department A?

  1. A.₦2,000
  2. B.₦1,800
  3. C.₦1,200
  4. D.₦1,000
  5. E.₦800
Show the answer and explanation

Answer: C (₦1,200)

Explanation

Rent by floor space: 120/300 × 3,000 = ₦1,200.