New Ventures Ltd. was incorporated on 1st July, 2016 with an authorised capital consisting of 5,000 equity shares of ₹ 10 each to take over the running business of Rundown Brothers as from 1st April, 2016. The following is the summarised Profit and Loss Account for the year ended 31st March, 2017:The company deals in one type of product. The unit cost of sales was reduced by 10 per cent in the post-incorporation pre-incorporation period in the year. You are required to apportion the net profit amount and post-incorporation periods showing the basis of apportionment. period as compared to the between pre-incorporation

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Dr. Particulars Cost of Sales for the year Administrative Expenses Selling Commission Goodwill written off Profit and Loss Account for the year ended 31st March, 2017 ₹ Particulars 16,000 1,768 875 200 373 1,250 330 320 444 100 3,340 25,000 Interest paid to Vendors (Loan repaid on 1st August) Distribution Expenses (60 per cent variable) Preliminary Expenses written off Debenture Interest Depreciation Directors Fees Net Profit Sales 1st April, 2016 to 30th June, 2016 1st July, 2016 to 31st March, 2017 6,000 19,000 ₹ Cr. 25,000 25,000