A company was incorporated on 30 June 2010 to acquire the business of Veer Singh as from 1 January 2010. The accounts for the year ended 31 December 2010 disclosed the following:
- There was a gross profit of Rs.14,40,000
- The sales for the year amounted to Rs.72,00,000, of which Rs.32,40,000 were for the first 6 months.
- The expenses debited to profit and loss account included:
|
Director’s fees |
90,000 |
|
Bad Debts |
21,600 |
|
Advertising (Under a monthly Contract of 6,000) |
72,000 |
|
Salaries |
3,84,000 |
|
Preliminary Expenses Written off |
30,000 |
|
Donation to Political Parties by Company |
30,000 |
You are required to prepare a statement showing profit made before and after incorporation