Q.3. ABC Ltd. was incorporated to take over the running business of BC and CI brothers...

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Q.3. ABC Ltd. was incorporated to take over the running business of BC and CI brothers with effect from 1st April, 2017. The Company was incorporated on 1st August, 2017. The following information was available from the books of accounts, which were closed on 31st March, 2018. Gross profit Shares transfer fees received Expenses: 7,00,000 10,000 (20 marks) Office Salaries Partner's Salaries Advertising Printing Stationery Travelling Expenses Office Rent Auditor's Remuneration Directors' Fees Bad Debts Sales Commission Preliminary Expenses Debenture Interest Interest on capital Depreciation Additional Information: 7,10,000 2,10,000 60,000 63,000 15,000 40,000 96,000 6,000 10,000 12,000 49,000 7,000 16,000 18,000 21,000 1. Monthly sales were 5, 00,000 for pre-incorporation period, while total sales for the year were 70,00,000. The sales were arose evenly throughout the concerned periods. 2. Office rent was 84,000 p.a. upto 30th September, 2017. It became 1,08,000 p.a. thereafter. 3. Travelling expenses included 7,000 towards sales promotion. 4. Auditor's Remuneration was payable for the whole year. 5. Bad debts written off included a debt of 4,000 taken over from the vendor, while the remaining were in respect of goods sold in September, 2017. 6. Depreciation includes 6,000 for assets acquired in the post incorporation period. Prepare profit & Loss account for the year ended 31st March, 2018 in the columnar form showing profit/ loss for the pre and post incorporation period. Q.3. ABC Ltd. was incorporated to take over the running business of BC and CI brothers with effect from 1st April, 2017. The Company was incorporated on 1st August, 2017. The following information was available from the books of accounts, which were closed on 31st March, 2018. Gross profit Shares transfer fees received Expenses: 7,00,000 10,000 (20 marks) Office Salaries Partner's Salaries Advertising Printing Stationery Travelling Expenses Office Rent Auditor's Remuneration Directors' Fees Bad Debts Sales Commission Preliminary Expenses Debenture Interest Interest on capital Depreciation Additional Information: 7,10,000 2,10,000 60,000 63,000 15,000 40,000 96,000 6,000 10,000 12,000 49,000 7,000 16,000 18,000 21,000 1. Monthly sales were 5, 00,000 for pre-incorporation period, while total sales for the year were 70,00,000. The sales were arose evenly throughout the concerned periods. 2. Office rent was 84,000 p.a. upto 30th September, 2017. It became 1,08,000 p.a. thereafter. 3. Travelling expenses included 7,000 towards sales promotion. 4. Auditor's Remuneration was payable for the whole year. 5. Bad debts written off included a debt of 4,000 taken over from the vendor, while the remaining were in respect of goods sold in September, 2017. 6. Depreciation includes 6,000 for assets acquired in the post incorporation period. Prepare profit & Loss account for the year ended 31st March, 2018 in the columnar form showing profit/ loss for the pre and post incorporation period.