Question 15.1 The following information applies to Supreme Hotels Ltd for the year ended 31 December. The Company operat

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Question 15 1 The Following Information Applies To Supreme Hotels Ltd For The Year Ended 31 December The Company Operat 1 (71.41 KiB) Viewed 39 times

Question 15.1 The following information applies to Supreme Hotels Ltd for the year ended 31 December. The Company operats a system of departmental accounting where the business is divided into three departments - accomodation, restaurant, and bar. Sales Purchases Opening inventory Wages and salaries Repairs and replacements Electricity and power Rent and rates Depreciation Postage and telephone Advertising Laundry and cleaning Accommodation Restaurant Bar Restaurant Bar Restaurant All other expenses are apportioned on the basis of turnover. 2. Inventory as at 31 December Bar Accommodation Restaurant Bar Accommodation Restaurant Bar $ 500,000 250,000 200,000 120,000 90,000 Restaurant Bar 117,500 80,120 32,500 4,000 3,000 29,500 14,500 Administration. The following additional information is available 1. Expenses that cannot be apportioned to particular departments are apportioned as follosw: Electricity and Power Accommodation Restaurant Bar 6,000 45,000 122,000 60,000 17,500 45,000 Rent, rates and depreciation are apportioned on the basis of floor space occupied as follows: Rent, rates and depreciation Accommodation Restaurant Bar 9,000 70,000 60% 35% 5% 6,000 square feet 3,000 square feet 1,000 square feet 3,500 2,000 Required a) Prepare a departmental income statement for the year ended 31 December based on the net profit method.