Byhagya Ltd. was incorporated on 1 March 2010 and received the Certificate of Commencement of Business on 1 April 2010. The company acquired the business of Viswas with effect from 1 November 2009. From the following figures relating to the year ending October 2010, find out the profits available for dividend.
- Sales for the year were Rs.30,00,000; Out of which sales up to 1 March 2010 were Rs.12,50,000.
- Gross profit for the year was Rs.9,00,000.
- The expenses debited to profit and loss account were:
|
Rent |
45,000 |
|
Salaries |
75,000 |
|
Directors’s fees |
22,000 |
|
Interest on debentures |
25,000 |
|
Audit fees |
7,500 |
|
Discount on sales |
18,000 |
|
Depreciation |
1,20,000 |
|
General expenses |
22,000 |
|
Advertising |
90,000 |
|
Printing & Stationery |
18,000 |
|
Commission on sales |
30,000 |
|
Bad debts (Rs. 2,500 relates to |
|
|
prior incorporation period) |
7,500 |
|
Interest to vendors on purchase |
|
|
consideration up to 1 May 2010 |
15,000 |