Question

Briefly explain the steps involved to ascertain pre incorporation and post incorporation profit

Answer 1

Profit prior to incorporation" is the profit earned or loss suffered during the period before incorporation. It is a capital profit and is not legally available for distribution as dividend because a company cannot earn a profit before it comes into existence. Calculate the pre and post incorporation period.

Answer 2

Answer:

Profit prior to incorporation" is the profit earned or loss suffered during the period before incorporation. It is a capital profit and is not legally available for distribution as dividend because a company cannot earn a profit before it comes into existence. ... Calculate the pre and post incorporation period.