55 questions. Try each one, then open the answer to check yourself and read the explanation.
Internal users of accounting information include
Answer: D (managers)
Managers work inside the business and use its accounts to plan and control; the others are outsiders.
The concept which shows that a business is a body recognized by law is
Answer: D (entity concept)
The entity concept treats the business as separate from its owners, a body of its own.
One of the items shown on the debit side of the income and expenditure account is
Answer: C (executives honorarium)
The debit side holds expenses; an honorarium paid to executives is an expense, while the others are income.
A trader sets aside N27,000 from her private funds for business purposes. The N27,000 is
Answer: C (capital)
Money the owner puts into the business from private funds is capital.
Acquisition of fixed assets for office use on credit is recorded in the
Answer: A (journal proper)
The purchases journal is only for goods for resale; credit purchase of fixed assets goes in the journal proper.
Use the following information to answer questions 7 to 9.
Stock (1/1/2020): Le 160,000
Stock (31/12/2020): Le 240,000
Returns inwards: Le 16,000
Sales: Le 362,000
Returns outwards: Le 24,000
Gross profit: Le 64,000
The purchases is
Answer: A (Le 386,000)
Net sales = 362,000 − 16,000 = 346,000; cost of sales = 346,000 − 64,000 = 282,000. Net purchases = 282,000 + 240,000 − 160,000 = 362,000, so purchases = 362,000 + 24,000 returns outwards = Le 386,000.
Use the following information to answer questions 7 to 9.
Stock (1/1/2020): Le 160,000
Stock (31/12/2020): Le 240,000
Returns inwards: Le 16,000
Sales: Le 362,000
Returns outwards: Le 24,000
Gross profit: Le 64,000
The cost of goods available for sale is
Answer: C (Le 522,000)
Cost of sales 282,000 + closing stock 240,000 = 522,000 (opening stock 160,000 + net purchases 362,000).
Use the following information to answer questions 7 to 9.
Stock (1/1/2020): Le 160,000
Stock (31/12/2020): Le 240,000
Returns inwards: Le 16,000
Sales: Le 362,000
Returns outwards: Le 24,000
Gross profit: Le 64,000
The cost of goods sold is
Answer: C (Le 282,000.)
Net sales (362,000 − 16,000) = 346,000 minus gross profit 64,000 = Le 282,000.
Return of goods sold on credit is posted to
Answer: A (returns inwards journal.)
Goods sold and sent back by customers are returns inwards, recorded in the returns inwards journal.
Use the following information to answer questions 11 and 12.
Prime cost: D 36,700
Factory overheads: D 6,600
Work-in-progress (1/1/2024): D 4,300
Work-in-progress (31/12/2024): D 3,600
Cost of goods sold: D 38,000
The cost of goods manufactured is
Answer: B (D 44,000)
36,700 + 6,600 + 4,300 − 3,600 = D 44,000.
Use the following information to answer questions 11 and 12.
Prime cost: D 36,700
Factory overheads: D 6,600
Work-in-progress (1/1/2024): D 4,300
Work-in-progress (31/12/2024): D 3,600
Cost of goods sold: D 38,000
The stock of finished goods on 31/12/2024 is
Answer: C (D 6,000)
With no opening finished goods given, closing stock = goods manufactured 44,000 − cost of goods sold 38,000 = D 6,000.
An item on the credit side of total creditors' control account is
Answer: A (cash refund from suppliers)
A cash refund received from a supplier is debited to cash and credited to the creditors' control account; returns, bills payable and payments are debit-side items.
Carriage on sales is charged to
Answer: C (profit and loss account)
Carriage on sales (carriage outwards) is a selling expense, so it goes to the profit and loss account.
Sales less returns inwards equals
Answer: D (net sales.)
Taking returns inwards away from sales gives net sales (turnover).
The preparation of statement of affairs from incomplete records is to determine the
Answer: B (capital.)
A statement of affairs lists assets and liabilities; the difference is the owner's capital.
The concept which underlies the provision for doubtful debts is
Answer: B (prudence concept)
Prudence says expected losses should be provided for, so a provision is made for debts that may not be paid.
The capital of Owa Social Club is referred to as
Answer: B (accumulated fund)
A club's capital is called its accumulated fund.
Double entry posting implies that a transaction is recorded
Answer: B (in two ledger accounts.)
Every transaction has a debit in one ledger account and a credit in another.
Debtors at start was $2,810 and at close was $1,730; cash and cheques received from customers amounted to $8,165. Credit sales for the year was
Answer: B ($7,085)
Credit sales = receipts + closing debtors − opening debtors = 8,165 + 1,730 − 2,810 = $7,085.
A partner who provided loan to the partnership would be regarded as
Answer: B (a creditor)
A loan from a partner is money the firm owes him, so for that loan he is a creditor.
Use the following information to answer questions 22 and 23.
Cost of motor vehicles (1/1/2018): Le 170,000
Residual value: Le 10,000
Estimated useful life of the asset is 10 years
The business makes use of straight-line method of providing for depreciation.
The annual depreciation is
Answer: C (Le 16,000)
(170,000 − 10,000) ÷ 10 years = Le 16,000 a year.
The expression that assets equal capital and liabilities is the
Answer: A (accounting equation)
Assets = Capital + Liabilities is the accounting equation.
Where a business maintains a fixed capital account, the share of profit of a partner would be
Answer: A (credited to current account.)
With fixed capitals, profit shares, interest and salaries go to the partners' current accounts as credits.
Use the following information to answer questions 27 and 28.
Capital (1/1/2024): Le 364,000
Capital (31/12/2024): Le 349,000
Drawings: Le 48,000
Additional capital introduced: Le 20,000
Net profit or net loss for the period is
Answer: B (profit of Le 13,000)
Profit = closing capital − opening capital + drawings − capital introduced = 349,000 − 364,000 + 48,000 − 20,000 = Le 13,000.
Use the following information to answer questions 27 and 28.
Capital (1/1/2024): Le 364,000
Capital (31/12/2024): Le 349,000
Drawings: Le 48,000
Additional capital introduced: Le 20,000
The change in capital balances for the year 2024 is
Answer: D (decrease of Le 15,000)
Capital fell from 364,000 to 349,000, a decrease of Le 15,000.
Withdrawal of cash D 10,000 by a sole proprietor from his business for personal use is treated in the books as a deduction from his capital. The concept applied is
Answer: B (entity concept)
Because the business is separate from the owner, money he takes for himself is drawings that reduce his capital.
Items on the credit side of a profit and loss account include
Answer: C (reduction in provision for doubtful debts)
A reduction in the provision for doubtful debts is a gain, credited to profit and loss; the others are losses or expenses.
Use the following information to answer questions 31 and 32.
Name — Capital Account — Drawings Account
Musa: ₦13,400 — ₦4,400
Cisse: ₦15,600 — ₦3,600
Interest: Capital 6%; Drawings 5%
Profit sharing ratio is 3:2 for Musa and Cisse respectively. Profit for the period is ₦36,500.
The residual profit to be shared according to the profit-sharing ratio is
Answer: C (₦35,160)
Interest on capital = 804 + 936 = 1,740; interest on drawings = 220 + 180 = 400. Residual = 36,500 + 400 − 1,740 = ₦35,160.
Use the following information to answer questions 31 and 32.
Name — Capital Account — Drawings Account
Musa: ₦13,400 — ₦4,400
Cisse: ₦15,600 — ₦3,600
Interest: Capital 6%; Drawings 5%
Profit sharing ratio is 3:2 for Musa and Cisse respectively. Profit for the period is ₦36,500.
Musa's share of profit is
Answer: B (₦21,096)
Residual profit 35,160 × 3/5 = ₦21,096.
Director's remuneration is treated in the profit and loss account as
Answer: A (revenue expenditure)
Directors' fees are a running cost of the year, so they are revenue expenditure.
A resource controlled by a business which is expected to yield a future benefit is classified as
Answer: A (an asset.)
That is the definition of an asset.
Use the following information to answer questions 35 and 36.
Local government common fund allocation: ₦80,000
General administration cost: ₦40,000
Market tolls: ₦5,000
Royalties: ₦10,000
Members of national assembly project: ₦60,000
Market rehabilitation: ₦100,000
Rural electrification: ₦71,000
The total revenue for the period is
Answer: D (₦95,000)
Revenue = common fund allocation 80,000 + market tolls 5,000 + royalties 10,000 = ₦95,000.
Use the following information to answer questions 35 and 36.
Local government common fund allocation: ₦80,000
General administration cost: ₦40,000
Market tolls: ₦5,000
Royalties: ₦10,000
Members of national assembly project: ₦60,000
Market rehabilitation: ₦100,000
Rural electrification: ₦71,000
The total expenditure for the period is
Answer: B (₦271,000)
Expenditure = 40,000 + 60,000 + 100,000 + 71,000 = ₦271,000.
The price paid by the acquiring company in a business takeover is
Answer: C (purchase consideration)
The amount paid for a business taken over is the purchase consideration.
One of the contents of memorandum of association is
Answer: D (liability clause of the company)
The memorandum states the company's name, objects, registered office, capital and the liability clause; the others belong in the articles.
An item treated in a company's profit and loss account is
Answer: D (debenture interest)
Debenture interest is an expense charged in the profit and loss account; dividends and reserves are appropriations or balance sheet items.
A business is acquired at par when the purchase consideration
Answer: B (equals the net assets.)
At par means the price paid equals the value of the net assets taken over, so there is no goodwill.
The source document used to prepare a petty cash book is petty cash
Answer: C (voucher.)
Every petty cash payment is supported by a petty cash voucher.
Use the following information to answer questions 43 and 44.
The transactions for a retail business for April 2024 were:
Credit purchases: $3,560
Returns outwards: $500
Cheque paid to suppliers: $2,400
In which ledger account will the transactions be recorded?
Answer: C (Purchases ledger control account)
Credit purchases, returns outwards and payments to suppliers all concern creditors, so they go to the purchases ledger control account.
Use the following information to answer questions 43 and 44.
The transactions for a retail business for April 2024 were:
Credit purchases: $3,560
Returns outwards: $500
Cheque paid to suppliers: $2,400
The amount payable to suppliers at the end of April 2024 is
Answer: D ($660)
3,560 − 500 − 2,400 = $660 still owed.
One of the accounts prepared for a branch includes
Answer: A (profit and loss account)
A branch prepares its own profit and loss account (and trading account) to show how it performed.
Use the following information to answer questions 46 to 48.
Stock: Le 70,000
Creditors: Le 14,000
Debtors: Le 44,000
Accrued income: Le 20,000
Bank overdraft: Le 50,000
The value of total assets is
Answer: D (Le 134,000)
The assets are stock, debtors and accrued income: 70,000 + 44,000 + 20,000 = Le 134,000; creditors and the overdraft are liabilities.
Use the following information to answer questions 46 to 48.
Stock: Le 70,000
Creditors: Le 14,000
Debtors: Le 44,000
Accrued income: Le 20,000
Bank overdraft: Le 50,000
The working capital is
Answer: C (Le 70,000)
Current assets 134,000 − current liabilities (14,000 + 50,000 = 64,000) = Le 70,000.
Use the following information to answer questions 46 to 48.
Stock: Le 70,000
Creditors: Le 14,000
Debtors: Le 44,000
Accrued income: Le 20,000
Bank overdraft: Le 50,000
The acid test ratio is
Answer: D (1:1)
Quick assets = 134,000 − 70,000 stock = 64,000; current liabilities = 64,000; so 64,000 : 64,000 = 1:1.
An imprest of GH¢ 800,000 was given to a petty cashier and GH¢200,000 was spent during the period. The reimbursement at the beginning of another period would be
Answer: D (GH¢200,000)
Under the imprest system the cashier is refunded exactly what was spent, GH¢200,000, to restore the float.
A limitation of money measurement concept is that it does not show a firm's.
Answer: B (quality of labour)
Only things measurable in money are recorded, so non-money facts such as the quality of labour are left out.
Musa Enterprises received statement of account from its bank and observed some discrepancies between the bank column of the cash book and the statement of account.
(a) Identify and explain the statement Musa Enterprises would prepare to correct the discrepancies.
(b) List and explain four reasons that would have necessitated the discrepancies.
(a) A bank reconciliation statement: a statement prepared by the account holder to explain the difference and bring the cash book (bank column) balance into agreement with the bank statement balance, after first updating the cash book.
(b) Any four, each explained:
- Unpresented cheques: cheques issued and entered in the cash book but not yet presented to the bank.
- Uncredited cheques/lodgements: amounts paid in and entered in the cash book but not yet credited by the bank.
- Bank charges and commission: deducted by the bank but not yet in the cash book.
- Standing orders/direct debits: payments made by the bank on instruction, not yet in the cash book.
- Credit transfers/direct credits and interest or dividends received by the bank: on the statement, not in the cash book.
- Dishonoured cheques: returned unpaid by the bank.
- Errors by the bank or errors in the cash book.
Name the statement first, then give four timing or error differences, each with a one-line explanation.
Mr. Wazo approached a firm of financial analyst for advice on the viability of Mapo Plc. The analyst employed accounting ratio as a tool for the advice.
(a) Explain the tool employed by the analyst for the advice.
(b) List three types of the tool employed by the analyst.
(c) State five limitations of the tool employed for the advice.
(a) Accounting ratios: figures that express the relationship between two related items in the financial statements (e.g. profit to sales), used to judge performance, liquidity and position and to compare firms or years.
(b) Any three: profitability ratios; liquidity (solvency) ratios; efficiency (activity/turnover) ratios; investment (shareholders') ratios; gearing (leverage) ratios.
(c) Any five: based on past (historical) figures, so may not predict the future; inflation/price changes distort comparisons; different accounting policies make comparison between firms hard; differences in size and industry; no single ideal ratio; ignores non-money factors (e.g. staff quality); seasonal variations; figures can be window-dressed; interpretation is subjective; different definitions of the same ratio.
Define ratios, give three groups, then five clear limitations.
The accountant of XYZ Limited prepares the financial statement following the rules and guidelines such as: business entity concept, going concern concept, realization concept; materiality concept and consistency concept. Explain each of the identified rules and guidelines followed by the accountant of XYZ Limited.
- Business entity: the business is treated as separate from its owners; only business transactions are recorded (owner's private dealings are drawings/capital).
- Going concern: the business is assumed to continue operating for the foreseeable future, so assets are shown at cost less depreciation, not at break-up value.
- Realization: revenue is recognised when goods or services are delivered and the customer becomes liable to pay, not when cash is received.
- Materiality: only items significant enough to affect users' decisions need separate treatment; small items (e.g. a stapler) can be expensed.
- Consistency: the same accounting methods (e.g. depreciation, stock valuation) are used from year to year so results are comparable; any change must be disclosed.
One clear explanation for each of the five concepts.
Agbo Enterprises operates departmental accounting; the owner is concerned with the bases of apportioning the following overhead expenses: (i) heating and lighting; (ii) advertisement; (iii) canteen expenses; (iv) depreciation of building; (v) insurance of premises
(a) Outline one basis of apportioning each of the overhead expenses in Agbo Enterprises.
(b) State five benefits of the type of account operated by Agbo Enterprises.
(a) (i) Heating and lighting: floor area (or cubic capacity/volume) of each department.
(ii) Advertisement: sales (turnover) of each department.
(iii) Canteen expenses: number of employees in each department.
(iv) Depreciation of building: floor area occupied.
(v) Insurance of premises: floor area occupied (or value of building space used).
(b) Any five: shows the gross and net profit of each department; identifies unprofitable departments for corrective action; helps compare departments' performance; helps decide on stocking, pricing and expansion; helps reward departmental managers (commission); aids control of costs and stock in each department; provides information for planning and budgeting.
Match each overhead to the factor that drives it, then list five uses of departmental accounts.
Abu Enterprise bought a computer for D 200,000 on 1st January 2021. The scrap value was estimated at D 40,000 with an expected lifespan of 8 years. It was later sold on 31st December 2024 for D 133,000.
You are required to prepare: (a) Computer Account; (b) Provision for Depreciation Account; (c) Computer Disposal Account; (d) Profit and Loss Account Extract.
Annual depreciation (straight line) = (200,000 − 40,000) ÷ 8 = D 20,000.
(a) Computer Account: Dr 1/1/2021 Bank 200,000; balance c/d each year 200,000; 31/12/2024 Cr Disposal 200,000.
(b) Provision for Depreciation Account: Cr 31/12/2021 P&L 20,000 (bal c/d 20,000); 2022 P&L 20,000 (bal 40,000); 2023 P&L 20,000 (bal 60,000); 2024 P&L 20,000 (total 80,000); 31/12/2024 Dr Disposal 80,000.
(c) Computer Disposal Account: Dr Computer 200,000; Dr P&L (profit on disposal) 13,000 = 213,000 | Cr Provision for depreciation 80,000; Cr Bank 133,000 = 213,000.
(Net book value 200,000 − 80,000 = 120,000; proceeds 133,000; profit D 13,000.)
(d) Profit and Loss Account (extract), years ended 31 December: Depreciation of computer D 20,000 in each of 2021, 2022, 2023 and 2024; 2024 profit on disposal of computer D 13,000 (credit/added).
Depreciation is 20,000 a year; four years give 80,000, so the computer's book value at sale is 120,000.
The following information were extracted from the books of Pletora Ltd for the month of June 2023.
Purchases ledger balance b/f: GH¢61,345
Sales ledger balance b/f: GH¢100,220
Credit sales: GH¢920,580
Credit purchases: GH¢817,500
Returns outwards: GH¢18,780
Returns inwards: GH¢15,500
Cheques paid to suppliers: GH¢815,350
Cash received from customers: GH¢915,000
Discount allowed: GH¢30,200
Discount received: GH¢15,250
Bad debts written-off: GH¢850
Credit notes issued: GH¢2,500
Set-off: GH¢10,280
Sales ledger balance (Dr): GH¢46,470
Purchases ledger balance (Cr): GH¢19,185
You are required to prepare: (a) Sales Ledger Control Account; (b) Purchases Ledger Control Account
(a) Sales Ledger Control Account (GH¢):
Dr: Balance b/f 100,220; Credit sales 920,580 = 1,020,800
Cr: Returns inwards 15,500; Cash received 915,000; Discount allowed 30,200; Bad debts 850; Credit notes issued 2,500; Set-off (purchases ledger) 10,280; Balance c/d 46,470 = 1,020,800
(b) Purchases Ledger Control Account (GH¢):
Dr: Returns outwards 18,780; Cheques paid 815,350; Discount received 15,250; Set-off (sales ledger) 10,280; Balance c/d 19,185 = 878,845
Cr: Balance b/f 61,345; Credit purchases 817,500 = 878,845
The closing balances agree with the ledger balances given (46,470 Dr and 19,185 Cr).
Debtors' increases go on the debit side of the sales ledger control; the set-off appears in both accounts.
Kalu and Musa decided to dissolve their partnership on 31st December 2022. They shared profit or loss in the ratio of 2:3 respectively. The balance sheet before dissolution was as follows:
Balance sheet as at 31st December 2022
Capital Account: Kalu ₦750,000; Musa ₦675,000 — ₦1,425,000
Current Account: Kalu ₦360,000; Musa ₦195,000 — ₦555,000
Current Liabilities: Creditors ₦300,000; Bank overdraft ₦120,000 — ₦420,000
Total ₦2,400,000
Fixed Assets: Motor vehicle ₦720,000; Machinery ₦450,000; Premises ₦330,000 — ₦1,500,000
Current Assets: Stock ₦600,000; Debtors ₦300,000 — ₦900,000
Total ₦2,400,000
Additional information:
(i) The following assets were realized: Motor vehicle ₦630,000; Machinery ₦600,000; Stock ₦300,000; Debtors ₦225,000
(ii) Kalu and Musa took over the premises for ₦150,000 and ₦135,000 respectively. (iii) The creditors were discharged for ₦240,000 (iv) Dissolution cost amounted to ₦90,000.
You are required to prepare: (a) Realization Account (b) Partners' Capital Account; (c) Bank Account.
(a) Realization Account (₦):
Dr: Motor vehicle 720,000; Machinery 450,000; Premises 330,000; Stock 600,000; Debtors 300,000; Bank (dissolution cost) 90,000 = 2,490,000
Cr: Bank – motor vehicle 630,000, machinery 600,000, stock 300,000, debtors 225,000 (1,755,000); Kalu's capital (premises) 150,000; Musa's capital (premises) 135,000; Creditors (discount 300,000 − 240,000) 60,000; Loss on realization 390,000 (Kalu 2/5 = 156,000; Musa 3/5 = 234,000) = 2,490,000
(b) Partners' Capital Accounts (₦) — Kalu | Musa:
Cr: Balance b/d 750,000 | 675,000; Current account transferred 360,000 | 195,000 = 1,110,000 | 870,000
Dr: Realization (premises) 150,000 | 135,000; Realization (loss) 156,000 | 234,000; Bank (final payment) 804,000 | 501,000 = 1,110,000 | 870,000
(c) Bank Account (₦):
Dr: Realization (assets sold) 1,755,000
Cr: Balance b/d (overdraft) 120,000; Creditors 240,000; Realization expenses 90,000; Kalu 804,000; Musa 501,000 = 1,755,000
The loss on realization is shared 2:3, then each partner's closing capital is paid out of the bank.
The following information were extracted from the books of Toyebi Ltd.
Trading, Profit and Loss Account for the year ended 31st December 2022
Opening stock $63,000
Add: Purchases $215,000
$278,000
Less: Closing stock $50,300
Cost of goods sold $227,700
Gross profit c/d $190,650
$418,350 | Sales $418,350
Expenses $150,650
Net profit $40,000
$190,650 | Gross profit b/d $190,650
Balance Sheet as at 31st December 2022
Capital $110,500
Add: Net profit $40,000
$150,500
Less: Drawings $21,400
$129,100
Current Liability: Creditors $41,750
$170,850
Fixed Assets $69,700
Current Assets: Stock $50,300; Debtors $32,500; Cash $18,350
$170,850
You are required to calculate: (a) Rate of stock turnover; (b) Gross profit margin; (c) Current ratio; (d) Acid test ratio; (e) Return on capital employed.
(a) Rate of stock turnover = cost of goods sold ÷ average stock = 227,700 ÷ ((63,000 + 50,300) ÷ 2 = 56,650) = 4.02 times.
(b) Gross profit margin = gross profit ÷ sales × 100 = 190,650 ÷ 418,350 × 100 = 45.57%.
(c) Current ratio = current assets ÷ current liabilities = (50,300 + 32,500 + 18,350 = 101,150) ÷ 41,750 = 2.42:1.
(d) Acid test ratio = (current assets − stock) ÷ current liabilities = (101,150 − 50,300 = 50,850) ÷ 41,750 = 1.22:1.
(e) Return on capital employed = net profit ÷ capital employed × 100 = 40,000 ÷ 129,100 × 100 = 30.98% (≈ 31%). (Capital employed = total assets 170,850 − current liabilities 41,750 = 129,100.)
Write each formula, substitute the figures, then give the answer with its unit (times, %, :1).
The following balances were extracted from the books of Bala Ventures for the year ended 31st December 2023.
Department — Amount (Le)
Stock – 1st January, 2023: Electronics 30,000; Clothing 25,000
Sales: Electronics 600,000; Clothing 400,000
Purchases: Electronics 300,000; Clothing 200,000
Carriage inwards 1,500
Carriage outwards 10,250
Advertising 8,400
Selling expenses 12,000
Salaries 23,000
Rates 14,200
Repairs 7,320
Electricity 45,000
Cleaning 60,000
Discounts allowed 4,300
Discounts received 2,500
Sundry expenses 16,800
Stationery 25,820
Stock – 31st December 2023: Electronics 18,000; Clothing 12,000
Additional information:
Expenses are to be apportioned between the departments as follows: (i) Proportionate to purchases: carriage inwards, discounts received. (ii) Proportionate to sales: carriage outwards; advertising; selling expenses; discounts allowed. (iii) Total floor area occupied by electronics department is 3/5 and clothing department is 2/5. (iv) Electricity and cleaning expenses are to be apportioned on the basis of floor area occupied. (v) Other expenses are to be apportioned equally.
You are required to prepare Departmental, Trading, Profit and Loss Account for the year ended 31st December, 2023. (Note: Total Column is not required)
Purchases, sales and floor area all split 3:2 (Electronics : Clothing); salaries, rates, repairs, sundry expenses and stationery split equally.
Trading (Le) — Electronics | Clothing:
Opening stock 30,000 | 25,000; Purchases 300,000 | 200,000; Carriage inwards 900 | 600; Less closing stock 18,000 | 12,000; Cost of sales 312,900 | 213,600
Sales 600,000 | 400,000; Gross profit 287,100 | 186,400
Add discounts received 1,500 | 1,000 = 288,600 | 187,400
Expenses — Electronics | Clothing:
Carriage outwards 6,150 | 4,100; Advertising 5,040 | 3,360; Selling expenses 7,200 | 4,800; Discounts allowed 2,580 | 1,720; Electricity 27,000 | 18,000; Cleaning 36,000 | 24,000; Salaries 11,500 | 11,500; Rates 7,100 | 7,100; Repairs 3,660 | 3,660; Sundry expenses 8,400 | 8,400; Stationery 12,910 | 12,910
Total expenses 127,540 | 99,550
Net profit: Electronics Le 161,060; Clothing Le 87,850
Apportion each expense first in a working table, then build the two columns side by side.