department accounts

for example cost of a product is 100.

mark up is 50% on cost, so ptofit on that is 50/-

Memorandum stock a/c debited with 150

memorandum marup a/c credited with 50

that means expexted sales from that unit is 150/- whaere as expected profit is 50.

when marked down the profit by 30/- (defective some extent).

i.e. when profit sacrificed means revenue will decline to the extent of ptofit (marked down).

so 30 should reflect under credit side of memorandum stock a/c and debit side of memorandum markup a/c.