Menu
support@graduatecourseshelp.com
+1(805) 568 7317

the promoters of proposed prosperity ltd purchased a running business on 1 april 200 618328

The promoters of proposed Prosperity Ltd. purchased a running business on 1 April 2009 from Mr. Alphonse and was incorporated on 1 August 2009. The combined P&L A/c of the company prior to and after the date of incorporation is as under:

Particulars

Particulars

To Rent, Rates,

36,000

By Gross Profit

4,50,000

Insurance

By Discount

18,000

Electricity &

Received from

Salaries

Creditors

To Director”s

10,800

Sitting Fees

To Preliminary

14,700

Expenses

To Carriage

16,500

Outwards and

Selling Expenses

To Interest Paid to

30,000

Vendors

To Net Profit

3,60,000

4,68,000

4,68,000

Further information:

  1. Sales up to 31 July 2009 were Rs.9,00,000 out of total sales of Rs.45,00,000 of the year.
  2. Purchases up to 31 July 2009 were Rs.9,00,000 out of the total purchases of Rs.27,00,000.
  3. Interest paid to vendors on 1 February 2010 (@12% p.a. on Rs.3,00,000 being purchase consideration).

From the above information, prepare P&L A/c for the year ended 31 March 2010, showing the profit earned prior to and after incorporation and also show the transfer of the same to the appropriate accounts.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now