CMS Ltd. was incorporated on 1 st July 1999 to take over the running business of Selvam, with effect from

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CMS Ltd. was incorporated on 1st July 1999 to take over the running business of Selvam, with effect from 1st April 1999. The profit and loss account was prepared on 31st March 2000. Bad debts debited to profit and loss account was ₹1,250, of which ₹350 related to sales effected after 1th July 1999. Average monthly turnover from July 1999 onwards was double than that of pervious months. Calculate sales ratio and amount of ad debts to be charged between pre- and post-incorporation periods.

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Related Book For  answer-question

Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

Question Details
Chapter # 6- PROFITS PRIOR TO INCORPORATION...
Section: EXERCISES AND PROBLEMS
Problem: 11
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Question Posted: September 01, 2023 05:00:14