RMK Ltd. was registered as company on 1 st July 2007 to take over the running business of Kumar, with
RMK Ltd. was registered as company on 1st July 2007 to take over the running business of Kumar, with effect from 1st April 2007. The Profit & Loss A/c account was finalised on 31st March 2008. Bad debts debited to Profit & Loss A/c was ₹4,000 of which ₹1,000 to sales effected after 1st July 2007. Average monthly turnover from July 2007 onwards was double than that of pervious months. Calculate sales ratio and amount of bad debts to be charged between pre- and post-incorporation periods.
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