A company was incorporated on 1st May, 2016 to take over a business from the preceding 1st January. The accounts were made upto 31st December, 2016 as usual and the Trading and Profit and Loss Account gave the following result:

It is ascertained that the sales for November and December are one and half times the average of those for the year, whilst those for February and April are only half the average. Apportion the year’s profit between the pre-incorporation and the post-incorporation period.

Transcribed Image Text:

To Opening Stock To Purchases To Gross Profit c/d Particulars To Rent, Rates and Insurance To Director's Fees To Salaries To Office Expenses To Travellers' Commission To Discounts To Bad Debts To Audit Fees ₹ 1,40,000 9,10,000 3,00,000 13,50,000 By Sales By Closing Stock 18,000 By Gross Profit b/d 20,000 51,000 48,000 12,000 15,000 3,000 8,500 Particulars ₹ 12,00,000 1,50,000 13,50,000 3,00,000