The promoters of proposed Prosperity Ltd. purchased a running business on 1 April 2009 from Mr. Alphonse and was incorporated on 1 August 2009. The combined P&L A/c of the company prior to and after the date of incorporation is as under:
|
Particulars |
Particulars |
||
|
To Rent, Rates, |
36,000 |
By Gross Profit |
4,50,000 |
|
Insurance |
By Discount |
18,000 |
|
|
Electricity & |
Received from |
||
|
Salaries |
Creditors |
||
|
To Director”s |
10,800 |
||
|
Sitting Fees |
|||
|
To Preliminary |
14,700 |
||
|
Expenses |
|||
|
To Carriage |
16,500 |
||
|
Outwards and |
|||
|
Selling Expenses |
|||
|
To Interest Paid to |
30,000 |
||
|
Vendors |
|||
|
To Net Profit |
3,60,000 |
||
|
4,68,000 |
4,68,000 |
Further information:
- Sales up to 31 July 2009 were Rs.9,00,000 out of total sales of Rs.45,00,000 of the year.
- Purchases up to 31 July 2009 were Rs.9,00,000 out of the total purchases of Rs.27,00,000.
- Interest paid to vendors on 1 February 2010 (@12% p.a. on Rs.3,00,000 being purchase consideration).
From the above information, prepare P&L A/c for the year ended 31 March 2010, showing the profit earned prior to and after incorporation and also show the transfer of the same to the appropriate accounts.