PROFIT PRIOR TO INCORPORATION

Let the Average Sales be 'X'

So the Sales for Jan and Oct will be 1.5X. The Sales for Dec will be 3X. and for the rest of the months the sale will be X.

Now in Pre-Incorporation period sales will be 1.5X+X+X+X = 4.5X

And in Post In-corporation period sales will be X+X+X+X+X+1.5X+x+2X= 9.5X

Therefore ratio will be 4.5X=9.5X

Sales ratio = 4.5 : 9.5 

                    = 0.9 : 1.9

Reagrds,

Devendra K

HI DEVENDRA THNX A LOT I REALLY APPRECIATE U R HELP.

AGAIN THANKS A LOT.

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Originally posted by : Devendra

but  devendra the company closses his books on 31st dec it means the time ratio will be 1:11.

and i think  the jan month will be after incorporation and not pre incorporation.please advice

Devendra...your answer seems to be correct...I also got the same answer...let wait for others to advice

i got the answer but little bit confusion in time ratio 

plz give me a tips how to clear icwai inter still 10 days for exam still i didnt prepare how i can i prepare i dont know how to study at all