Amaravathi sold her business to Komala Ltd., with effects from 1 st January 2007 for 5,00,000. The

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Amaravathi sold her business to Komala Ltd., with effects from 1st January 2007 for ₹5,00,000. The company was incorporated on 1st April 2007 and on 31st December 2007, the accounts were finalised. The company paid off Amaravathi on 31st August 2008 with interest of ₹40,000. Salaries for the year amounted to ₹58,000. There were five employees before incorporation, but three more were recruited on the date of incorporation. You are required to calculate:

(a). Time Ratio. 

(b). Adjusted Time Ratio for Interest. 

(c). Weighted Time Ratio for Salaries.

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Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

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