Profi or loss prior to incorporation group 1 (ipcc)

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Profit Or loss prior to incorporation(ipcc gp1)

Calculate Wage Ratio

date of taking over business:1.1.2001

date of incorporation : 1.5.2001

date of commencement of business : 1.7.2001

accounting perid = calander year

total wages incurred 2001 = Rs 72000

calculate wage ratio, when rates of wages tripled from 1st april 2001.

plz solve with simple workings! I want to know how the problem has been solved??? answer of wage ratio is 1:4

any one?plz reply fast!!

is there ne1 who can solve this?

 

Replies (1)

Pre-incorproation period = 01.01.2001 to 30.04.2001 (4m)
.
Post-incorporation period = 01.05.2001 to 31.12.2001 (8m)
.
Let the rate of wages (row) be x
.

Pre

..Jan..

..Feb..

..Mar..

..Apr..

       

row

x

x

x

3x

       

Post

..May..

..Jun..

..July..

..Aug..

..Sep..

..Oct..

..Nov..

..Dec..

row

3x

3x

3x

3x

3x

3x

3x

3x

.
Therefore, wages ratio (Pre:Post) = (3x+3x : 3x*8) or, 6x : 24x or, 1:4


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