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How its came ?? Doubt ratio
Accountancy
Dear friends the chapter profit or loss pre and post incorporation, in this screen shot basis of allocation 2:7 for pre 1,20,000 for post 4,20,000 How they are deviating this amount ,plse explain me
Answers (5)
Best Answer
Gross Profit is to be divided in the Sales ratio. So, we have to first find the sales ratio, which is 2:7 in this case. Then, the total amount of Gross profit of ₹ 5,40,000 is to be divided in the ratio of 2:7. In this way, we can arrive at the following amounts: Pre - 2/9 x 5,40,000 = 1,20,000 Pre - 7/9 x 5,40,000 = 4,20,000
Rifhat Khan
The amount is apportioned on the basis of sales ratio calculated as per the working here
Thank you ,but how they are divide and give this pre amount and post amount I need that??
Thread Starter
MPR Sanjay KumarThank you ,but how they are divide and give this pre amount and post amount I need that??
Pre = 540000 x 2/9 Post= 540000x7/9
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