Problem No. 2 Vasant Ltd. Was incorporated on 1st August, 2010 to take over the running business of M/s. Ankush Bros. a partnership firm, w.e.f. 1st April, 2010. The company received the certificate of commencement of business on 1st October, 2010. The following Profit and Loss A/c was prepared for the year ended 31st march, 2011. Profit and Loss A/c for the year ended 31/03/2011 Expenses Rs. Income Rs. To Office & Administrative Expenses 71,400 By Gross Profit 1,60,000 To Partner’s Salaries 16,100 By Share Transfer Fees 2,000 To Selling & Distribution Expenses 24,800 To Director’s Fees 2,000 To Debenture Interest 3,200 To Interest on Partner’s Capital 3,600 To Bank Charges 900 To Preliminary Expenses 2,000 To Net Profit 38,000 1,62,000 1,62,000 Additional Information: Sales arose evenly upto date of certificate of commencement of business. Thereafter they recorded an increase of two-third of the average monthly sales. Prepare Profit and Loss A/c for the year ended 31st March, 2011, in a columnar form showing the profit or loss during ‘Pre’ and ‘Post’ incorporation period separately. Problem No. 3 Share in profit in lieu of interest Baneshwar Ltd. Was incorporated on 1st September 2009 to take over the business of Ekta & Gomati, a partnership firm with effect from 1st April, 2009. Following is their Profit and Loss Account for the year ended 31st March, 2010. Dr. Side Cr. Side Rs. Rs. To Salaries 39,000 By Gross Profit 1,80,000 To Rent 8,000 By Interest on Fixed Deposit 12,000 To Bad Debts 11,000 To Office Expenses 2,400 To Directors Fees 1,000 To Debenture Interest 2,800 To Selling Expenses 24,300 To Salary to Partners 5,000 To Printing & Stationary 6,000 To Prelininary Expenses 1,500 To Net Profit 91,000 1,92,000 1,92,000 Additional Information : Average monthly turnover from October 2009 to March 2010 was twice the average monthly turnover from April, 2009 to September 2009. Rent is doubled from 1st December 2009.
Problem No. 2 Vasant Ltd. Was incorporated on 1st August, 2010 to take over the running business of M/s. Ankush Bros. a partnership firm, w.e.f. 1st April, 2010. The company received the certificate of commencement of business on 1st October, 2010. The following Profit and Loss A/c was prepared for the year ended 31st march, 2011. Profit and Loss A/c for the year ended 31/03/2011 Expenses Rs. Income Rs. To Office & Administrative Expenses To Partner’s Salaries To Selling & Distribution Expenses To Director’s Fees To Debenture Interest To Interest on Partner’s Capital To Bank Charges To Preliminary Expenses To Net Profit 71,400 16,100 24,800 2,000 3,200 3,600 900 2,000 38,000 1,62,000 By Gross Profit By Share Transfer Fees 1,60,000 2,000 1,62,000 Additional Information: Sales arose evenly upto date of certificate of commencement of business. Thereafter they recorded an increase of two-third of the average monthly sales. Prepare Profit and Loss A/c for the year ended 31st March, 2011, in a columnar form showing the profit or loss during ‘Pre’ and ‘Post’ incorporation period separately. Problem No. 3 Share in profit in lieu of interest Baneshwar Ltd. Was incorporated on 1st September 2009 to take over the business of Ekta & Gomati, a partnership firm with effect from 1st April, 2009. Following is their Profit and Loss Account for the year ended 31st March, 2010. Dr. Side Rs. Cr. Side Rs. To Salaries To Rent To Bad Debts To Office Expenses To Directors Fees To Debenture Interest To Selling Expenses To Salary to Partners To Printing & Stationary To Prelininary Expenses To Net Profit 39,000 8,000 11,000 2,400 1,000 2,800 24,300 5,000 6,000 1,500 91,000 1,92,000 By Gross Profit By Interest on Fixed Deposit 1,80,000 12,000 1,92,000 Additional Information : Average monthly turnover from October 2009 to March 2010 was twice the average monthly turnover from April, 2009 to September 2009. Rent is doubled from 1st December 2009.