Profit or Loss Pre and Post Incorporation
|Item||Basis of Apportionment between pre and Post incorporation period|
|Gross profit or Gross Loss
Variable expenses linked with Turnover [e.g. Carriage / Cartage outward, Selling and distribution expenses, Commission to selling agents/tarvelling agents, advertisements expenses, Bad debts, Brokerage, Sales Promotion]
|Sales Ratio - On the basis of turnover in the respective periods (first preference)
On the basis of cost of goods sold in teh respective periods in the absence of any information regarding turnover (second prefernce)
Time Ratio - On the basis of time in the respective periods in the absence of any information regarding turnover and cost of good sold (third prefernce)
|Fixed Common charges [e.g., Salaries, Office and Administration Expenses, Rent, Rates and Taxes, Printing an dStationery, Telephone, telegram and postage, Depriciation, Miscellaneous Expenses]||Time Ratio|
|Expenses exclusively relating to pre-Incorporation period [e.g. Interest on Vendor's Capital]||Charge to Pr-incorporation period (but if the purchase consideration is not paid on taking over of business, interest for the subsequent period is charged to post incorporation period)|
|Expenses exclusively relating to post-incorporation period [e.g. Formation expenses, interest on debentures, director's fees, Directors' remuneration, Preliminary Expenses, Share issue Expenses, Underwriting commission, Discount on issue of securities]||Charge to Post-incorporation period|
||Charge to Post-incorporation period
On the basis of turnover in the respective periods
|Interest on purchase consideration to vendor
||Charge to Pre-incorpiration period
Charge to Post-incorporation period
|Pre-incorporation Profits||Pre-incorporation Losses|
|It is transferred to Capital Reserve Account (i.e. capiatlised)||It is treated as a part of business acquisition cost (Goodwill)|
|It can be used for:
||It can be sued for:
Ruchika Ma'am has been a meritorious student throughout her student life. She is one of those who did not study from exam point of view or out of fear but because of the fact that she JUST LOVED STUDYING. When she says - love what you study, it has a deeper meaning.
She believes - "When you study, you get wise, you obtain knowledge. A knowledge that helps you in real life, in solving problems, finding opportunities. Implement what you study". She has a huge affinity for the Law Subject in particular and always encourages student to - "STUDY FROM THE BARE ACT, MAKE YOUR OWN INTERPRETATIONS". A rare practice that you will find in her video lectures as well.
She specializes in theory subjects - Law and Auditing.
Yash Sir (As students call him fondly) is not a teacher per se. He is a story teller who specializes in simplifying things, connecting the dots and building a story behind everything he teaches. A firm believer of Real Teaching, according to him - "Real Teaching is not teaching standard methods but giving the power to students to develop his own methods".
He cleared his CA Finals in May 2011 and has been into teaching since. He started teaching CA, CS, 11th, 12th, B.Com, M.Com students in an offline mode until 2016 when Konceptca was launched. One of the pioneers in Online Education, he believes in providing a learning experience which is NEAT, SMOOTH and AFFORDABLE.
He specializes in practical subjects – Accounting, Costing, Taxation, Financial Management. With over 12 years of teaching experience (Online as well as Offline), he SURELY KNOWS IT ALL.
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