Model: Comprehensive Bright Ltd. was incorporated on 1 July 2009 with on authorized capital consisting of 1,00,000 equity shares of Rs.10 each to take over the running business from White Bros. from 1 April 2009. The following is the summarized profit and loss account for the year 3 ended 31 March 2010:
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Particulars |
Particulars |
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Cost of Sales for the Year |
2,50,000 |
Sales: ? |
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Administrative Expenses |
15,000 |
1 April 2009 to 30 June 2009 : 80,000 |
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Selling Commission |
10,000 |
1 July 2009 to 31 March 2010 : 3,20,000 |
4,00,000 |
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Goodwill Written off |
5,000 |
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Interest Paid to Vendors (Loan Repaid on 1 February) |
8,000 |
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Distribution Expenses (60% Variable) |
10,000 |
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Preliminary Expenses Written off |
4,000 |
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Debentures Interest |
5,000 |
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Depreciation |
6,000 |
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Director”s Fees |
2,000 |
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Net Profit |
85,000 |
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|
4,00,000 |
4,00,000 |
Further information:
- Stock on 31 March 2010 Rs.30,000
- Purchase consideration Rs.3,00,000 to be paid by the issue of 3,000 equity shares of 100 each
- Gross profit percentage is fixed, turnover is double in April, November and December
- Preliminary expenses are to be written off
- Carriage outward and travelling commission vary in direct proportion to sales
You are required to prepare trading and profit and loss account for the year ended 31 March 2010 appropriating between pre- and post-incorporation periods and a balance sheet as on 31 March 2010.