byhagya ltd was incorporated on 1 march 2010 and received the certificate of commenc 618322

Byhagya Ltd. was incorporated on 1 March 2010 and received the Certificate of Commencement of Business on 1 April 2010. The company acquired the business of Viswas with effect from 1 November 2009. From the following figures relating to the year ending October 2010, find out the profits available for dividend.

  1. Sales for the year were Rs.30,00,000; Out of which sales up to 1 March 2010 were Rs.12,50,000.
  2. Gross profit for the year was Rs.9,00,000.
  3. The expenses debited to profit and loss account were:

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45,000

Salaries

75,000

Directors’s fees

22,000

Interest on debentures

25,000

Audit fees

7,500

Discount on sales

18,000

Depreciation

1,20,000

General expenses

22,000

Advertising

90,000

Printing & Stationery

18,000

Commission on sales

30,000

Bad debts (Rs. 2,500 relates to

prior incorporation period)

7,500

Interest to vendors on purchase

consideration up to 1 May 2010

15,000

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