A company was incorporated on 1 August 2010 in order to purchase a running business from 1 April 2010. The following particulars are available from its records:
|
(i) Total sales for 2010–11: |
2,40,000 |
|
(ii) Sales from 1 April 2010 to 31 July 2010 |
60,000 |
|
(iii) Gross profit for the whole year |
90,000 |
|
(iv) Total expenses of 2010–11 (including director’s fees 3,000) |
75,000 |
|
(v) Company’s share capital |
2,25,000 |
You are required to calculate profit prior to incorporation and after incorporation by preparing profit and loss account.