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Financial accounting-1

This query is : Resolved 

05 May 2012 Topic: Profit Prior to Incorporation

Dt. Of Purchase :1.4.2005
Dt. Of Incorporation::1.10.2005
Dt. Of Year End:31.03.2006

Adjustment regarding salary Item
-salary amt. For whole year is Rs.240000/-

Adj.-
salaries include Rs.40000/- paid to the director. There werw 3 employees upto 30.09.05 after which the number was increased by 6 employees. The rate of salary was the same in all cases.

So, please help me how to allocate salary in pre and post period.

05 May 2012 Please help me to solve this adjustment

05 May 2012 Salary to the director = 40000(post incorporation)

Remaining salary of Rs.200000(240000-4000) is
to be allocated on the following ratio.

From April to September and Oct to March
3:3:3:3:3:3:6:6:6:6:6:6=54

So salary for April to September=18=200000*18/54=66667/-
Oct to March=36=200000*36/54=1,33,333/-







05 May 2012 Thank u so much sir for helping me...

07 May 2012 Ur answer was wrong the no. Of employees r increased 'BY' 6 and not from 3 'TO' 6



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