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WAEC Financial Accounting 2008 Question 40

Question 40

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
Rent apportioned to Department B is

  1. A.N4,000
  2. B.N3,600
  3. C.N2,000
  4. D.N1,600
Show the answer and explanation

Answer: C (N2,000)

Explanation

By floor area: 6,000 × 100/300 = N2,000; N4,000 is Department A's share.