Question

Calculate time ratio and weighted time ratio for the Pre and

Post incorporation periods from the following particulars :

Date of Incorporation 1st June 2009.

Period of Financial Accounts :

April 2009 to March 2010.

Total wages Rs. 4,800.

Number of workers :

Pre incorporation period – 5.

Post incorporation period – 25.

Also divide the total wages between Pre and Post incorporation

periods.​

Answer 1

Answer:

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Answer 2

Answer:

Time Ratio = 1:5

Weighted Time Ratio = 1:25

Wages Pre Incorporation  = Rs.185

Wages Post Incorporation = Rs.4615

Explanation:

Pre Incorporation  : Post Incorporation

2 : 10 or 1 : 5

Time Ratio = 1:5

Weighted Time Ratio =  Number of workers Pre Incorporation : Number of Workers Post Incorporation

From Time Ratio(1) x Number of workers pre incorporation(5) = 1x5 = 5

From Time Ratio(5) x Number  workers post incorporation(25) = 5x25 =125

Weighted Time Ratio = 5 : 125 or 1:25

Total Wages = 4500

From Weighted Time Ratio we can represent 1:25 as 1/26 Pre Incorporation and 25/26 as Post incorporation

Wages Pre Incorporation  = 1/26 x 4800 = 185

Wages Post Incorporation = 25/26 x 4800 = 4615