X and Y who were working as partners formed a limited company in the name of XY(P) Ltd, on 1st June, 2016 to take over their existing business, with the consideration being a sum of ₹ 4,80,000 and the condition that until the amount was discharged, they would pay interest @6% p.a. from 1st January, 2016. The amount was paid on June 30, 2016. To discharge the purchase consideration, the company issued 30,000 Equity Shares of ~ 10 each at a premium of ₹ 1 each for cash and allotted 7% Debentures of the face value of ₹ 2,00,000 to the vendors at par. The following was the Profit and Loss Account of XY (P) Ltd for the year ended 31.12.2016.

You are required to prepare a statement apportioning the balance between the post- and pre-incorporation periods assuming that the sales in the post-incorporation period were double the same in the pre-incorporation period. Show how these figures would appear in the Balance Sheet of XY (P) Ltd.

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Dr. To Purchases including stock To Freight and cartage To Gross profit c/d To Salaries and wages To Debenture interest To Depreciation 2,00,000 By Sales 10,000 By Closing stock 81,000 2,91,000 15,000 By Gross Profit b/d 7,000 1,500 Cr. 2,70,000 21,000 2,91,000 81,000