From the following information you are required to prepare a statement apportioning the retained profit between the pre-incorporation and post incorporation periods, showing the basis of apportionment:
VU Limited was incorporated on 1 July 2016 with an authorised share capital of 60,000 ordinary shares of £1 each, to take over the business of L and Sons as from 1 April 2016.
The purchase consideration was agreed at £50,000 for the net tangible assets taken over, plus a further £6,000 for goodwill.
Payment was satisfied by the issue of £30,000 8% loan notes and 26,000 ordinary shares both at par, on 1 August 2016. Interest at 10% per annum on the purchase consideration was paid up to this date.
The company raised a further £20,000 on 1 August 2016 by the issue of ordinary shares at a premium of £0.25 per share.
The abridged statement of profit or loss for the year ending 31 March 2017 was as follows:

The company sells one product only, of which the unit selling price has remained constant during the year, but due to improved buying the unit cost of sales was reduced by 10% in the post-incorporation period as compared with the pre-incorporation period.
Taxation is to be ignored.

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Sales: 1 April 2016 to 30 June 2016 1 July 2016 to 31 March 2017 Cost of sales for the year Depreciation Directors' fees Administration salaries and expenses Sales commission Goodwill impaired written off Interest on purchase consideration, gross Distribution costs (60% variable) Preliminary expenses written off Loan note interest, gross Dividend paid on ordinary shares Retained profits carried forward 41 30,000 95,000 80,000 2,220 500 8,840 4,375 1,000 1,867 6,250 1,650 1,600 7,560 44 125,000 115,862 9,138