the promoters of proposed prosperity ltd purchased a running business on 1 april 200 618328

The promoters of proposed Prosperity Ltd. purchased a running business on 1 April 2009 from Mr. Alphonse and was incorporated on 1 August 2009. The combined P&L A/c of the company prior to and after the date of incorporation is as under:

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To Rent, Rates,	36,000	By Gross Profit	4,50,000
Insurance		By Discount	18,000
Electricity &		Received from
Salaries		Creditors
To Director”s	10,800
Sitting Fees
To Preliminary	14,700
Expenses
To Carriage	16,500
Outwards and
Selling Expenses
To Interest Paid to	30,000
Vendors
To Net Profit	3,60,000
	4,68,000		4,68,000

Further information:

Sales up to 31 July 2009 were Rs.9,00,000 out of total sales of Rs.45,00,000 of the year.
Purchases up to 31 July 2009 were Rs.9,00,000 out of the total purchases of Rs.27,00,000.
Interest paid to vendors on 1 February 2010 (@12% p.a. on Rs.3,00,000 being purchase consideration).

From the above information, prepare P&L A/c for the year ended 31 March 2010, showing the profit earned prior to and after incorporation and also show the transfer of the same to the appropriate accounts.

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