Question

A company incorporated on 1.7.2014 to take over the business of
Mr. Kumar as a going concern with effect from 1.4.2014.
Accounts are closed on 31.3.15. Total sales for the year 31.3.2015
was Rs. 3,00,000 divided into Rs. 1,00,000 for the period upto
1.7.2014 and the balances for the remaining period. Calculate
the Time Ratio and sales Ratio..... PLEASE NEED ANSWER

Answer 1

Answer:

time ratio

= 1.4.2014 to 30.6.2014 is incorporation period

1.7.2014 to 31.3.15 is post incorporation period

so ratio is= 3:9=1:3

sakes ratio =

100000:200000=1:2

100000(pre incorporation sales )

200000(post incorporation sale)