AKSHIT MALHOTRA (C.A Final Student) (1337 Points)
15 March 2011
IN THE CHAPTER PROFIT PRIOR TO INCORPORATION A QUESTION WAS THERE IN WHICH TIME RATIO WAS 1:2.CO. WAS INCORPORATED ON 1st MAY.FINANCAL YEAR ENDS ON 31st DECEMBER.
IN ADJUSTMET IT WAS THERE THAT SALARY WAS INCREASED BY Rs. 2,000 p.m. THE AMOUNT OF SALARY WAS Rs. 85,000.PLEASE TELL ME IN RESPECT OF PRE & POST INCORPORATION PERIOD..
THNX IN ADVANCE.PLEASE HELP.
AVIJIT
(CA FINALIST)
(370 Points)
Replied 18 March 2011
In the sum you didn't mention from when the salary increased. I assume it increased from the incorporation of company. So lets assume the salary before incorporation wasa p.m. So after incorp. it was Rs.(a+2000) p.m. Therefore total Salary = 4*a + 8*(a+2000) =12a + 16000.
Now, 12a + 16000= 85000 i.e. a=Rs.5750.
Preincorp salary = 4*5750
Post incorp Salary =8*5750+16000
AKSHIT MALHOTRA
(C.A Final Student)
(1337 Points)
Replied 18 March 2011
THNX A LOT AVIJIT U R ANSWER IS CORRECT.
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