PLEASE HELP ME IF ANYBODY KNOWS THE ANSWER
I WAS STUDYING THIS CHAPTER & I FOUND ONLY ONE DOUBT IN THIS CHAPER WHICH IS
SALES FOR JAN & OCTOBER WERE 1 & HALF TIMES THE AVERAGE MONTHLY SALES WHILE SALES FOR DEC. WERE TWICE THE AVERAGE MONTHLY SALES.
THE CO. WAS INCORPORATED ON 1 MAY 2006 TO TAKE OVER THE BUSINESS OF DEF & CO.
ACCOUNTS R CLOSED ON 31st DEC.
PLEASE TELL ME HOW TO CALCULATE SALES RATIO.
THNX IN ADVANCE.
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.
You can thank me using the 'Thank User' Icon.
| Originally posted by : Devendra | ||
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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
CAclubindia
