Question

A company earned a net profit of
45,000 after debiting all expenses of
75,000. The sales ratio of Pre-
incorporation and Post-incorporation
periods is 2:3. Find out the allocation of
Gross Profit amount in pre & post
incorporation periods.
18,000 : 27,000
48,000 : 72,000
O 12,000 : 18,000
30,000 : 45,000​

Answer 1

Answer

D :- 30,000 : 45000

Explanation:-...

Answer 2

b) 48000:72000

Explanation:

• A company allocates expenses and revenue between post and pre incorporation only when a purchasing company purchases a business from the vendor.
• But after purchasing the business, there comes some gap between purchasing and incorporation of business because of this company allocates the business in two parts.

Given : Net profit = ₹45000

           expenses = ₹75000

           sales ratio = 2:3

To find: The allocation of Gross Profit amount in pre & post    incorporation periods.

Solution:

  Gross profit = net profit + expenses

                         = 45000+75000

                        = 120000

Sales ratio = 2:3

In pre = 120000*2/5 = ₹48000

In post = 120000*3/5 = ₹72000