Question

Ascertainment of Profit Prior to Incorporation
blem :1
5,20,000
XYZ Limited was incorporated on 1st July, 2017 to acquire the business from 15 April 2017. It
ending 31 March, 2018 is as under
received certificate of commencement of business on 1st August, 2017. Its Profit and Loss A/C for the year
Particulars
Particulars
To Office Salaries
To Selling Commission
60,000|| By Gross Profit b/f
78,000
To Carriage Outward
42,250
To Rent and Taxes
1,20,000
To Debenture Interest
25,400
Co Printing and Stationary
15,000
o Advertising Expenses
65,000
Net Profit
1,14,350
5,20,000
5,20,000
Additional Information :
Sales for the pre-incorporation period was @ 5,00,000 per month. Total sales for the year ended
31 March, 2018 was 65,00,000.
Prepare Profit and Loss A/c in the Columnar form for the year ending 31* March, 2018 allocating
various items on suitable basis in the pre-incorporation and post-incorporation period​

Answer 1

Answer:

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