Adarsh Udyog Ltd incorporated on 1st May, 2016, received the certificate to commence business on 31st May, 2016. It had acquired a running business from Gupta and Co with effect from 1st January, 2016. The purchase consideration was ₹ 50,00,000 of which ₹ 10,00,000 was to be paid in cash and ₹ 40,00,000 in the form of fully paid shares. The company also issued shares for ₹ 40,00,000 for cash. 

Machinery costing ₹ 25,00,000 was then installed. 

Assets acquired from the vendors were : 

machinery -------- ₹ 30,00,000; 

stock ------------------ ₹ 6,00,000; 

patents -------------- ₹ 4,00,000. 

During the year 2016 the total sales were ₹ 1,80,00,000, the sales per month in the first half-year being one-half of what they were in the latter half-year. The net profit of the company, after charging the following expenses, was ~ 10,00,000 : 

Depreciation--------------₹ 5,40,000; 

Audit fees -------------------- ₹ 26,000; 

Director’s fees --------------₹ 60,000; 

Preliminary expenses----₹ 10,000; 

Office expenses -------- ₹ 2,40,000; 

Selling expenses -------- ₹ 1,98,000; 

Interest to vendors -------- ₹ 50,000 

Ascertain the pre-incorporation and post-incorporation amounts of profit and prepare the Balance Sheet of the company as on 31st December, 2016. The closing stock was valued at ₹ 7,00,000.