WAEC Financial Accounting 2008 Question 39

Question 39

Departmental Accounts

Henik Plc has departments A and B and has made the following information available concerning its operations:
Turnover: Department A N100,000; Department B N80,000
Commission N3,600
Rent N6,000
Floor space: Department A 200 m²; Department B 100 m²
How much commission was apportioned to Department A?

  1. A.N9,600
  2. B.N3,600
  3. C.N2,000
  4. D.N1,600.
Show the answer and explanation

Answer: C (N2,000)

Explanation

By turnover: 3,600 × 100/180 = N2,000.