busines carried on by The Business carried on by Kamal under the name...
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Accounting
busines carried on by
The Business carried on by Kamal under the name "K" was taken over as a running business with effect from 1* April, 2020 by Sanjana Ltd., which was incorporated on 14 July, 2020. The same set of books was continued since there was no change in the type of business and the following particulars for the year ended 31st March, 2021 were available: Sales: Company period (1.7.20 to 31.3.21) 40,000 Prior period (1.4.20 to 30.6.20) 10.000 50,000 Selling Expenses 3,500 Preliminary Expenses written off 1,200 Salaries paid 3,600 Directors' Fees 1,200 Interest on Capital (Upto 30.6.2020) 700 Depreciation 2,800 Rent expense 4.800 Purchases: Company period (1.7.20 to 31.3.21) 21,875 Prior period (1.4.20 to 30.6.20) 3.125 Carriage Inwards 1.000 43,800 Net Profit 6.200 You are required to prepare a statement showing the amount of pre and post incorporation period profits stating the basis of allocation of expenses
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