you are required to prepare trading and profit and loss account for the year ended 3 618295

Model: Comprehensive Bright Ltd. was incorporated on 1 July 2009 with on authorized capital consisting of 1,00,000 equity shares of Rs.10 each to take over the running business from White Bros. from 1 April 2009. The following is the summarized profit and loss account for the year 3 ended 31 March 2010:

Particulars Don't use plagiarized sources. Get Your Custom Essay on you are required to prepare trading and profit and loss account for the year ended 3 618295 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page Order Essay		Particulars
Cost of Sales for the Year	2,50,000	Sales: ?
Administrative Expenses	15,000	1 April 2009 to 30 June 2009 : 80,000
Selling Commission	10,000	1 July 2009 to 31 March 2010 : 3,20,000	4,00,000
Goodwill Written off	5,000
Interest Paid to Vendors (Loan Repaid on 1 February)	8,000
Distribution Expenses (60% Variable)	10,000
Preliminary Expenses Written off	4,000
Debentures Interest	5,000
Depreciation	6,000
Director”s Fees	2,000
Net Profit	85,000
	4,00,000		4,00,000

Further information:

Stock on 31 March 2010 Rs.30,000
Purchase consideration Rs.3,00,000 to be paid by the issue of 3,000 equity shares of 100 each
Gross profit percentage is fixed, turnover is double in April, November and December
Preliminary expenses are to be written off
Carriage outward and travelling commission vary in direct proportion to sales

You are required to prepare trading and profit and loss account for the year ended 31 March 2010 appropriating between pre- and post-incorporation periods and a balance sheet as on 31 March 2010.

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