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.
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Answer 1

Answer:

Time ratio = 1:3

Sales ratio = 1:2