average monthly sales during the first 4 months of the year were twice the average m 618294

Model: Time ratio, adjusted time ratio, weighted sales ratio and preparation of statement Kapur Ltd. was incorporated on 1 May 2009 to take over the running business of Sunil & Bros. with effect from 1 January 2009. From the following details for the year ended 31 December 2009, you are required to prepare a statement showing profit or loss made during the pre- and post-incorporation periods:


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(ii)	Salaries	90,000
(iii)	Advertising	9,000
(iv)	Commission to Partners	12,000
(v)	Carriage Outward	15,000
(vi)	Depreciation	21,000
(vii)	Provision for Doubtful Debts	6,000
(viii)	Undertaking Commission	30,000
(ix)	Insurance Premium paid for the year ending 31 March 2010	18,000
(x)	Interest on Loan taken (Including Rs.6,000 on Loan taken after Incorporation)	24,000

Additional data:

Average monthly sales during the first 4 months of the year were twice the average monthly sales during each of the remaining 8 months.
30% of the underwriting commission is to be written off
Commission to partners was paid for their work before incorporation
Salaries include salary paid to a director of a company Rs.12,000.

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