Riddhima Co. Ltd. was incorporated on 30 September 2009 to take over the business of M/s Parul & Co. as from 1 April 2009. The financial accounts of the business for the year ended 31 March 2010 disclosed the following information:
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Particulars |
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Sales: |
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April to September |
3,60,000 |
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October to March |
5,40,000 |
9,00,000 |
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Less: Purchases: |
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April to September |
2,25,000 |
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October to March |
3,60,000 |
5,85,000 |
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Gross Profit |
3,15,000 |
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Less: |
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Salaries |
45,000 |
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Selling Expenses |
9,000 |
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Depreciation |
4,500 |
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Director’s Remuneration |
2,250 |
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Debenture Interest |
270 |
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Administration expenses (Rent, Rates, etc.)} |
13,500 |
74,520 |
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Profit for the year 2009–10 |
2,40,480 |
You are required to prepare a statement apportioning the balance of profit between the periods prior to and after incorporation and show the profit and loss appropriation account for the year ended 31 March 2010.