FINANCIAL ACCOUNTING SSS2 SECOND TERM              

WEEK 1 &2

DEPARTMENTAL ACCOUNTS

Performance Objectives

Students should be able to:

1.       What is a departmental account?.

2.       State four reasons why organizations separate their operations into different departments.

Contents

MEANING OF DEPARTMENTAL ACCOUNTS

Usually, in large organizations, the operations are divided into separate departments. This is because such organizations have a large volume of transactions coupled with a wide range of lines of product and as such finds it convenient for accounting purpose to separate or divide their operations into different departments. This affords the organization easy operations and accountability.

In departmentalized organizations, the accounting process entails keeping separate journal and ledger books for each of the departments such as separate.... View More