Profits Prior To Incorporation

X Ltd. was incorporated on 1st April 2006, took over a running business, Y Ltd., from 1st January 2006 and it closed its accounts on 31st December 2006 what is the pre-incorporation period for X Ltd.

• 1 Jan 2006 to 31st March 2006

• 1 Jan 2006 to 30th April 2006

• 1 April 06 to 31st Dec 06

• 1.1.2006 to 31.12.2006

Ganesh Ltd., was registered on 01-07-1997 to acquire the running business of Suneel & Co., with effect from 1-1-97. Accounts of Ganesh Ltd. are closed on 31.12.1997. Find out post incorporation period.

• Post incorporation period from 1-4-97 to 31-12-97 = 4 months

• Post incorporation period from 1-7-97 to 31-12-97 = 6 months

• Post incorporation period from 1-1-97 to 31-07-97 = 6 months

• Post incorporation period from 1.1.97 to 30.9.97 = 6 months

Pankaj Mills Ltd., was incorporated on 31st July 1977 to purchase the business of Hema & Co., as on 1st April 1977. The books of accounts disclosed the following on 31st March 1978. Find out pre and post incorporation period

• Pre incorporation period from 31.7.77 to 31.3.78

• Pre incorporation period from 1.4.77 to 31.7.77 Post incorporation period from 31.7.77 to 31.3.78 = 8 months

• Pre incorporation period from 31.7.77 to 31.3.78 Post incorporation period from 1.4.77 to 31.7.77

• Post incorporation period from 31.7.77 to 31.3.78

A” Co. Ltd. was incorporated on May 1, 2008 to take over the business of “X & Co” as a going concern from January 1,2008. Books are closed on 31st Dec 2008 find out pre-incorporation period

• Cannot say .

• Pre incorporation period from 1.5.83 to 31.12.83

• Pre incorporation period from 1.1.83 to 1.5.83

• Post incorporation period from 1.5.83 to 31.12.83

Rent & Taxes should be allocated on basis of whcih ratio ?

• Cannot say

• Sales Ratio

• REnt Ratio

• Time Ratio

How must Preliminary Exp. be allocated between Pre and Post Incorporation periods ?

• Sales Ratio

• Time ratio

• Fully put in Pre-Incorporation

• Fully put in Post-Incorporation

A company was incorporated on 1st May 1984 acquiring the business of a sole trader with effect from 1st January 1984. The accounts of the company were closed for the first time on 30th September 1984. calculate Time RAtio

• Time Ratio = 6:4

• Time Ratio = 1:1

• Time Ratio = 4:5

• Time Ratio = 5:4

A Company was incorporated on 1st May, 1994 to take over a business from 1st January 1994. The accounts were made upto 31st December, 1994 Find out Time Ratio

• Time Ratio = 4:8 or 1:2

• Time Ratio = 8:4 or 2:1

• Time Ratio = 1:3

• Time Ratio = 1:4

Dep. on Machinery must be allocated on ____________ Ratio

• Sales

• Time

• Both

• Machinery ratio

Gross Profit must be divided between Pre and Post Incorporation period in ratio of ?

• Cant Say

• Profit

• Sales

• Time