Vector Ltd. was incorporated on 1^st April 1990 for the purpose of taking over the business of Shanta stores as a going concern from 1^st January 1990. Purchase consideration will be paid on 31^st December 1990 and the vendors will be entitled to 5% of the profits earned prior to incorporation in lieu of interest on unpaid purchase consideration. The summarized trading results on the basis of accounts prepared for the year ended on 31^st December 1990 were as follows:

Prepare a statement showing pre- and post-incorporation profits. Gross profit should be apportioned on the basis of turnover and general expenses on time basis. 

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Particulars To Purchases (after adjusting Stocks) To Gross Profit To General Expenses To Director's Fees To Formation Expenses To Net Profit Particulars 7,00,000 By Sales (Jan-Mar) 3,00,000 (Apr-Dec.) 10,00,000 1,80,000 14,000 6,000 1,00,000 3,00,000 By Gross Profit 2,00,000 8,00,000 10,00,000 3,00,000 98,500