Departmental Accounting

Department Accounting

Departmental Accounting is a account which is prepared when all the division of a business is located under one roof and it is prepared to a ascertain profit and loss of each department separately. 

Advantages of departmental accounting

Main advantages of departmental accounting are: 

1. Result of each department may be critically compared. 

2. Result of different department may help the management in decision making. 

Q. What is unrealised profit on stock? 

When good are sent at invoice price then the stock either opening or closing are valued at invoice price. Loading included on stock is called unrealised profit on stock. 

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