{"id":5839,"date":"2022-07-21T17:05:42","date_gmt":"2022-07-21T17:05:42","guid":{"rendered":"https:\/\/commerceiets.com\/?p=5839"},"modified":"2022-07-21T17:05:42","modified_gmt":"2022-07-21T17:05:42","slug":"departmental-accounts-bcom-1st-year","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/departmental-accounts-bcom-1st-year\/","title":{"rendered":"DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR : Departmental accounting, meaning, features, objectives, advantages, allocation of expenses.<\/h4>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>QUESTION: What do you mean by departmental accounts? Explain its objectives. Briefly discuss the methods of departmental accounts.<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DEPARTMENTAL ACCOUNTING: <\/strong>Departmental <a aria-label=\"Accounting (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounting<\/a> refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department are recorded and reported separately. The departments are then consolidated into the accounts of the head office to prepare the financial statements of the company.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">A department is defined as a part with the special or\nallocated duty\/ function or area of activity.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> A Textile mill which is having head office and factory. Separate accounts are maintained for production facilities and then the final results are sent to head office which is then incorporated by head office in their accounts.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Thus, a departmental accounting system is an accounting\ninformation system that records the activities and financial information about\nthe department.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">FEATURES OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<ul><li>The accounts are prepared separately for each department.<\/li><li>Each department is taken as profit center.<\/li><li>Planning and budgeting is done separately for each department based on its own accounting records.<\/li><li>The accounts of various departments are consolidated to provide a whole view of the company.<\/li><li>Departmental Accounting is generally adopted by the multi national corporations.<\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\">OBJECTIVES OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The following are the objectives of the departmental\naccounting:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ASSESSING OPERATIONAL EFFICIENCY:<\/strong> The main aim of departmental accounting is to assess the operational efficiency of each department separately. Each department prepare its own accounts and this leads to knowing its profitability position separately from others. Also the stock turnover ratio and other ratios are calculated separately that tells about its efficiency.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>OPEN OR SHUT DEPARTMENT:<\/strong> Departmental accounting helps to know about the profit or loss incurred by each department. After analyzing the whole financial position of the department from its accounts, the decision can be taken whether to shut the department or not.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Also in departmental accounting, the workload of any\ndepartment can be checked out. It helps in taking decision of the opening of a\nnew separate department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>INTER-DEPARTMENTAL COMPARISON IS POSSIBLE: <\/strong>Departmental Accounting helps in comparing one department with the other. It highlights the positive points of each department. Inter-departmental comparison induces officials of departments to perform better.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DETAILED INFORMATION ABOUT CONCERN: <\/strong>In departmental accounting, firstly accounts are made on the basis of the departments and then are consolidated to make accounts of company as a whole. By doing this, we can get detailed information about all the departments. <\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>IMPROVEMENT IN OVERALL PROFIT OF THE BUSINESS:<\/strong> The friendly rivalry among all the departments induces them to work in the best possible way. Efficiency at each department level leads to the efficiency of the whole company. This makes improvement in overall profit of the business.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>SOUND PLANNING AND BUDGETING: <\/strong>In departmental accounting, every department makes its budget at its own. It is easy for the officials to take decisions or plan about their future course of action. Thus, planning and budgeting at departmental level promotes sound planning for company also.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>OTHER OBJECTIVES: <\/strong>The other objectives of departmental accounting are as follows:<\/p>\n\n\n\n<ul><li>The growth potential of each department in comparison to other can be evaluated.<\/li><li>Departmental managers and staff can be rewarded properly on the basis of the results.<\/li><li>It helps the management to determine the justification of capital outlay in each department.<\/li><li>It facilitates the comparison of expenses items with those in other departments and in the previous period.<\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\">METHODS OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">There are two methods for departmental Accounting:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">METHOD 1: WHEN SEPARATE SET OF BOOKS ARE KEPT FOR EACH DEPARTMENT<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">As per this method, each department is taken as an\nindependent unit and it makes its own books of the accounts.&nbsp; This method is featured as:<\/p>\n\n\n\n<ul><li>Separate books from other departments are\nmaintained.<\/li><li>This method is suitable for large organizations.<\/li><li>The trading results are deposited with the main\naccountant to make the account of the whole company. <\/li><li>This method is very expensive.<\/li><li>It is very less common among the departmental\nenterprises.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">METHOD 2: WHEN SEPARATE SET OF BOOKS ARE NOT MAINTAINED<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">As per this method, no separate records of each department\nis maintained, rather joint accounts are maintained of all departments. This\nmethod is featured as:<\/p>\n\n\n\n<ul><li>No separate books are maintained.<\/li><li>This method is suitable for small organizations.<\/li><li>The whole accounts are kept by central accounts department.<\/li><li>The central Accounts department maintain analytical or Columnar sales book, purchases books are maintained.<\/li><li>The columnar trading accounts is maintained to calculate the gross profit and to keeping the records to stock.<\/li><li>The indirect expenses are apportioned among the departments on sound basis.<\/li><li>The columnar profit and loss account is maintained to calculate net profit of each department. <\/li><li>The departments kept some records of sales, purchases or direct expenses at their own but not on double entry system.<\/li><li>This method is less expensive.<\/li><\/ul>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\">DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>QUESTION: Give the meaning of Departmental Accounts. Explain the objectives and advantages of Departmental Accounts?<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DEPARTMENTAL ACCOUNTS:<\/strong> Departmental accounts refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department are recorded and reported separately. The departments are then consolidated into the accounts of the head office to prepare the financial statements of the company.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">A department is defined as a part with the special or\nallocated duty\/ function or area of activity.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> A Textile mill which is having head office and factory. Separate accounts are maintained for production facilities and then the final results are sent to head office which is then incorporated by head office in their accounts.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Thus, a departmental accounting system is an accounting\ninformation system that records the activities and financial information about\nthe department.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">FEATURES OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<ul><li>The accounts are prepared separately for each department.<\/li><li>Each department is taken as profit center.<\/li><li>Planning and budgeting is done separately for each department based on its own accounting records.<\/li><li>The accounts of various departments are consolidated to provide a whole view of the company.<\/li><li>Departmental Accounting is generally adopted by the multi national corporations.<\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\">OBJECTIVES OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The following are the objectives of the departmental\naccounting:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ASSESSING OPERATIONAL EFFICIENCY:<\/strong> The main aim of departmental accounting is to assess the operational efficiency of each department separately. Each department prepare its own accounts and this leads to knowing its profitability position separately from others. Also the stock turnover ratio and other ratios are calculated separately that tells about its efficiency.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>OPEN OR SHUT DEPARTMENT:<\/strong> Departmental accounting helps to know about the profit or loss incurred by each department. After analyzing the whole financial position of the department from its accounts, the decision can be taken whether to shut the department or not.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Also in departmental accounting, the workload of any\ndepartment can be checked out. It helps in taking decision of the opening of a\nnew separate department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>INTER-DEPARTMENTAL COMPARISON IS POSSIBLE: <\/strong>Departmental Accounting helps in comparing one department with the other. It highlights the positive points of each department. Inter-departmental comparison induces officials of departments to perform better.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DETAILED INFORMATION ABOUT CONCERN: <\/strong>In departmental accounting, firstly accounts are made on the basis of the departments and then are consolidated to make accounts of company as a whole. By doing this, we can get detailed information about all the departments. <\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>IMPROVEMENT IN OVERALL PROFIT OF THE BUSINESS:<\/strong> The friendly rivalry among all the departments induces them to work in the best possible way. Efficiency at each department level leads to the efficiency of the whole company. This makes improvement in overall profit of the business.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>SOUND PLANNING AND BUDGETING: <\/strong>In departmental accounting, every department makes its budget at its own. It is easy for the officials to take decisions or plan about their future course of action. Thus, planning and budgeting at departmental level promotes sound planning for company also.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>OTHER OBJECTIVES: <\/strong>The other objectives of departmental accounting are as follows:<\/p>\n\n\n\n<ul><li>The growth potential of each department in\ncomparison to other can be evaluated.<\/li><li>Departmental managers and staff can be rewarded\nproperly on the basis of the results.<\/li><li>It helps the management to determine the\njustification of capital outlay in each department.<\/li><li>It facilitates the comparison of expenses items\nwith those in other departments and in the previous period.<\/li><\/ul>\n\n\n\n<h4 class=\"has-text-align-center wp-block-heading\">ADVANTAGES OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">The main advantages of departmental accounts are as follows:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EVALUATION OF INCREASE IN EFFICIENCY: <\/strong>When separate profit and loss is calculated&nbsp; for each department, we can measure the efficiency of each department. We can take steps to increase the efficiency by decreasing the expenses of less profitable departments or by closing the departments which are running into the losses.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>COMPARISON BECOMES EASY:<\/strong> The departmental accounting makes the board of directors able to make comparison of the departments on the basis of the:<\/p>\n\n\n\n<ul><li>Expenses incurred<\/li><li>Targets realized<\/li><li>Revenue earned<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">Results of different departments can be computed and it\nbecomes easy to locate the shortcomings which will help in improvement of the\nresults.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>COMPUTATION OF COMMISSION: <\/strong>There can be such employees working in the different departments which are employed on the basis of commission on sale or commission on net profits. It can only be calculated if separate result of sales or profits is known.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>ASSISTANCE IN FRAMING FUTURE POLICIES:<\/strong> When results of different departments are known separately, following decisions can be taken easily:<\/p>\n\n\n\n<ul><li>Which department needs expansion?<\/li><li>When department activities are to be curtailed?<\/li><li>When department needs closure?<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>OTHER BENEFITS: <\/strong>The other advantages of departmental accounting are as follows:<\/p>\n\n\n\n<ul><li>It enables the business to chalk out the policies relating to expansion of the business.<\/li><li>Departmental managers can be rewarded or penalized on the basis of the performances.<\/li><li>It facilitates allocation of various expenses on sound basis.<\/li><li>Healthy competition between departments increases overall profits of the concern.<\/li><li>It helps to measure the efficiency of each department by calculating inventory turnover ratio of each department.<\/li><li>It supplies accounting information regarding results of various departments to the shareholders, investors, debenture holders and suppliers.<\/li><\/ul>\n\n\n\n<!--nextpage-->\n\n\n\n<h2 class=\"wp-block-heading\">DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>QUESTION: Define Departmental Accounts? What are the basis upon which the joint expenses are allocated to different departments?<\/strong><\/h3>\n\n\n\n<p><strong>OR<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is Departmental Accounting. What are the basis upon which the joint expenses are allocated to different departments.<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DEPARTMENTAL ACCOUNTS:<\/strong> Departmental accounts refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department are recorded and reported separately. The departments are then consolidated into the accounts of the head office to prepare the financial statements of the company.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">A department is defined as a part with the special or\nallocated duty\/ function or area of activity.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EXAMPLE:<\/strong> A Textile mill which is having head office and factory. Separate accounts are maintained for production facilities and then the final results are sent to head office which is then incorporated by head office in their accounts.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Thus, a departmental accounting system is an accounting\ninformation system that records the activities and financial information about\nthe department.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">FEATURES OF DEPARTMENTAL ACCOUNTING<\/h4>\n\n\n\n<ul><li>The accounts are prepared separately for each department.<\/li><li>Each department is taken as profit center.<\/li><li>Planning and budgeting is done separately for each department based on its own accounting records.<\/li><li>The accounts of various departments are consolidated to provide a whole view of the company.<\/li><li>Departmental Accounting is generally adopted by the multi national corporations.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">ALLOCATION OF EXPENSES IN DEPARTMENTAL ACCOUNTING<\/h2>\n\n\n\n<p class=\"has-medium-font-size\">The allocation of expenses in departmental accounting is\nvery important issue to arrive at the correct profit and loss account of each\ndepartment. The expenses are allocated in the following ways:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">EXPENSES INCURRED FOR PARTICULAR DEPARTMENT<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">There are certain expenses which are incurred for particular departments. These expenses are known as direct expenses and charged directly to the department. <strong>Example: <\/strong>Salary paid to workers of sales department.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">EXPENSES ALLOCATED PRECISELY<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">Some expenses are paid in lump-sum for the whole business but these can be allocated over different departments precisely. <strong>Example: <\/strong>It is possible to allocate electricity expenses over different departments precisely if separate sub-meters have been installed in each department.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">EXPENSES CANNOT BE ALLOCATED TO DIFFERENT DEPARTMENTS<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">There are certain expenses which cannot be allocated among different departments on any sound basis. These expenses should not be allocated as nothing will be gained by an arbitrary allocation. Profits revealed by various departments should be brought down in general Profit and Loss Account and these unallocated expenses should be transferred to this account. <strong>Example:<\/strong> Director\u2019s fees, interest on debentures, audit fees, general manager\u2019s salary etc.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">EXPENSES CANNOT BE APPORTIONED PRECISELY<\/h4>\n\n\n\n<p class=\"has-medium-font-size\">There are various expenses which cannot be apportioned precisely. These are allocated among different departments in the proportion of a sound basis to which that particular expenditure is directly related.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>CARTAGE, FREIGHT, INWARD ACCOUNT: <\/strong>Above expenses may be divided according to the purchase of each department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>DEPRECIATION:<\/strong> Depreciation may be divided according to the value of assets employed in each department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>REPAIRS AND RENEWAL CHARGES: <\/strong>Repairs and renewal of the assets may be divided according to the value of assets used by each department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>MANAGERIAL SALARY:<\/strong> Managerial salary should be divided according to the time spent by the manager in each department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>BUILDING REPAIR, RENTS AND TAXES, BUILDING INSURANCE ETC.:<\/strong> All the expenses related to the building should be divided according to the floor space occupied by each department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>SELLING AND DISTRIBUTION EXPENSE: <\/strong>All the expenses relating to selling and distribution expenses should be divided according to the sales of each department, such as freight outward, travelling expenses of sales personnels, salary and commission paid to salesman, after sale services expenses, discount and bad debts, etc.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>INSURANCE OF PLANT AND MACHINERY:<\/strong> The value of such plant and machinery in each department is the basis of the insurance.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>EMPLOYEE\/ WORKER INSURANCE:<\/strong> Charges of a group insurance should be divided according to the direct wage expenses of each department.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>POWER &amp; FUEL: <\/strong>Power and Fuel will be allocated according to the working hours and power of the machine i.e. <strong>Horse Power* Hours worked.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting\/\"><strong>Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/non-profit-organisation\/\"><strong>Non profit organisation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation\/\"><strong>Depreciation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/liquidity-ratios-types\/\"><strong>Liquidity ratios<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/nature-of-accounting\/\"><strong>Nature of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/receipt-and-payment-account-pdf\/\"><strong>Receipts and Payments Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/depreciation-accounting\/\"><strong>Depreciation Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/acid-test-ratio-formula\/\"><strong>Acid Test Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/benefits-of-accounting\/\"><strong>Benefits of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/hire-purchase-accounting-notes-pdf\/\"><strong>Hire Purchase Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cash-ratio\/\"><strong>Cash Ratio<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-cost-accounting-and-financial-accounting\/\"><strong>Difference between cost accounting and financial accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\"><strong>Financial accounting, cost accounting and management accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-hire-purchase-and-instalment\/\"><strong>Difference between hire purchase and instalment system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/financial-ratio-analysis\/\"><strong>Financial ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-transaction-and-event\/\"><strong>Difference between transaction and event<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/transactions\/\"><strong>Transactions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/users-of-accounting\/\"><strong>Users of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/current-ratio-formula\/\"><strong>Ratio analysis<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/limitations-of-accounting-2\/\"><strong>Limitation of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-expenditure\/\"><strong>Capital Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/instalment-system\/\"><strong>Instalment System<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-consignment-and-sale\/\"><strong>Difference between consignment and sale<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/book-keeping\/\"><strong>Book Keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-expenditure\/\"><strong>Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Reserves Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-normal-and-abnormal-loss\/\"><strong>Abnormal loss vs normal loss in consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accountancy\/\"><strong>Accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-expenditure-and-revenue-expenditure\/\"><strong>Difference between capital and revenue expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reserves-accounting\/\"><strong>Provisions&nbsp;<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/treatment-of-loss-on-consignment\/\"><strong>Treatment of loss on consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting as science or an art<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-equation\/\"><strong>Accounting Equation<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/single-entry-system-in-accounting\/\"><strong>Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-consignment\/\"><strong>Accounting treatment of consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book Keeping vs accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/deferred-revenue-expenditure\/\"><strong>Deferred Revenue Expenditure<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/statement-of-affairs-and-balance-sheet-difference\/\"><strong>Difference between statement of affairs and balance sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-consignment\/\"><strong>Joint venture vs consignment<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Book keeping vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/capital-receipt\/\"><strong>Capital receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/ifrs\/\"><strong>IFRS<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/departmental-accounting\/\"><strong>Departmental Accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-is-an-art-or-science\/\"><strong>Accounting vs accountancy<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue-receipt\/\"><strong>Revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/balance-sheet\/\"><strong>Balance Sheet<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-departmental-accounting\/\"><strong>Methods of departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/basis-of-accounting\/\"><strong>Basis of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-capital-and-revenue-receipt\/\"><strong>Difference between capital and revenue receipt<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/profit-and-loss-account\/\"><strong>Profit and loss Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-of-expenses-in-departmental-accounting\/\"><strong>Allocation of expenses in departmental accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/branches-of-accounting\/\"><strong>Branches of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Difference between accounting concepts and conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/trading-account\/\"><strong>Trading Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/inter-departmental-transfers\/\"><strong>Inter-departmental transfers<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cash-and-mercantile-system-of-accounting\/\"><strong>Cash and mercantile system of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-standards\/\"><strong>Accounting Standards<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/voyage-account\/\"><strong>Voyage Account<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/different-types-of-branches\/\"><strong>Different types of branches<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/accounting-principles\/\"><strong>Accounting Principles<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/objectives-of-accounting\/\"><strong>Objectives of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-for-incomplete-voyage\/\"><strong>Accounting for Incomplete Voyage<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-departmental-and-branch-accounting\/\"><strong>Departmental vs Branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/golden-rules-of-accounting\/\"><strong>Golden ru\nles of accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-accounting\/\"><strong>Process of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-venture\/\"><strong>Joint venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-branch-accounting\/\"><strong>Methods of branch accounting<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/double-entry-system-of-accounting\/\"><strong>Double entry system of book keeping<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-accounting\/\"><strong>Scope of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-joint-venture-and-partnership\/\"><strong>Joint Venture Vs Partnership<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incorporation-of-branch-trial-balance\/\"><strong>Incorporation of branch trial balance<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-double-single-entry-system\/\"><strong>Double entry vs Single entry system<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-accounting-concepts-and-conventions\/\"><strong>Accounting Concepts vs Accounting conventions<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/methods-of-recording-transactions-in-joint-venture\/\"><strong>Methods of recording transactions in Joint Venture<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/garner-vs-murray-rule\/\"><strong>Garner VS Murray Rule<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/history-of-accounting-pdf\/\"><strong>History of Accounting<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-provisions-and-reserves\/\"><strong>Difference between provisions and reserves<\/strong><\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consignment\/\"><strong>Consignment<\/strong><\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"897\" height=\"673\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/07\/Slide1-22.webp\" alt=\"DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR\" class=\"wp-image-5844\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/07\/Slide1-22.webp 897w, https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/07\/Slide1-22-300x225.webp 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/07\/Slide1-22-768x576.webp 768w\" sizes=\"(max-width: 897px) 100vw, 897px\" \/><figcaption>DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR : Departmental accounting, meaning, features, objectives, advantages, allocation of expenses. QUESTION: What do you mean by departmental accounts? Explain its objectives. Briefly discuss the methods of departmental accounts. DEPARTMENTAL ACCOUNTING: Departmental Accounting refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/departmental-accounts-bcom-1st-year\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":5843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[253],"tags":[308,309,169,310,311,312],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5839"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=5839"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/5843"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=5839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=5839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=5839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}