A company was incorporated on 1 August 2010 in order to purchase a running business from 1 April 2010. The following particulars are available from its records:
| (i) Total sales for 2010–11: Don't use plagiarized sources. Get Your Custom Essay on a company was incorporated on 1 august 2010 in order to purchase a running business 618316 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page | 2,40,000 |
| (ii) Sales from 1 April 2010 to 31 July 2010 | 60,000 |
| (iii) Gross profit for the whole year | 90,000 |
| (iv) Total expenses of 2010–11 (including director’s fees 3,000) | 75,000 |
| (v) Company’s share capital | 2,25,000 |
You are required to calculate profit prior to incorporation and after incorporation by preparing profit and loss account.
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