Vijay Ltd. was incorporated on 1st March, 2011 and received its certificate of commencement of business on 1st April, 2011. The company bought the business of M/s Small and Co. with effect from 1st November, 2010. From the following figures relating to the year ending October, 2011, find out the profit available for dividends:
(i) Sales for the year were Rs.6,00,000 out of which sales upto 1st March were Rs.2,50,000.
(ii) Gross profit for the year was Rs.1,80,000.
(iii) Expenses debited to the Profit and Loss account were:
|
RS |
|
|
Rent |
9,000 |
|
Salaries |
15,000 |
|
Directors‘ fees |
4,800 |
|
Interest on debentures |
5,000 |
|
Audit fees |
1,500 |
|
Discount on sales |
3,600 |
|
Depreciation |
24,000 |
|
General expenses |
4,800 |
|
Advertising |
18,000 |
|
Stationery and printing |
3,600 |
|
Commission on sales |
6,000 |
|
Bad debts |
1,500* |
|
Interest to vendor on purchase consideration upto May 1, 2011 |
3,000 |
*Rs.500 relates to debts created prior to incorporation.