C17 Illustation 2 Inder and Vishnu, working in partnership registered a joint stock company under the name of Fellow Travellers Ltd. on May 31, 2005 to take over their existing business. It was agreed that they would take over the assets of the partnership for a sum of Rs. 5,00,000 as from January 1st, 2005 and that until the amount was discharged they would pay interest on the amount at the rate of 6% per annum. The amount was paid on June 30, 2005. To discharge the purchase consideration, the company issued 20,000 equity shares of Rs. 10 each at a premium of Re. 1 each and allotted 7% Debentures of the face value of Rs. 1,50,000 to the vendors at par. The Profit and Loss Account of the "Felow Travellers Lid" for the year ended 31st December, 2005 was as follows: Rs. Rs. Purchase, including stock 1,40,000 Sales: Freight and carriage 5,000 1st January to 31st May 2005 60,000 Gross Profit old 60,000 1st June to 31st Dec, 2005 1,20,000 Stock in hand 25,000 2.05.000 2.05,000 Salaries and Wages 10,000 Gross profit bid 60,000 Debenture Interest 5,250 Depreciation 1,000 Interest on Purchase Consideration (up to 30-6-2005) 9,000 Selling Commission 9,000 Directors' Fees 600 900 Preliminary Expenses Provision for taxes Dividend on equity shares @ 5% Balance cld 6,000 5,000 13,250 60,000 60,000 Prepare statement apportioning the balance between the post and pre-incorporation' periods and also show how these figures would appear in the Balance Sheet of the company