Praful Co. Ltd., purchased the business on 1.4.2010. The company obtained the certificate of commencement on 31.7.2010. The following details are available as on 31.3.2011.

a) Total sales up to 31.3.2011 Rs.15, 00,000. Out of which 3, 75,000 belong to 1.4.2010 to 31.7.2010.

b) Gross profit was Rs.3, 18,000.

c) The expenses are as follows - Rent Rs.9,000 ; Insurance Rs.2,250 ; Depreciation on machinery Rs.45,000; Audit fee Rs.1,800 ; Director fee Rs.3,900 ; Advertising Rs.12,000; General expenses Rs.7, 200; Preliminary expenses Rs.10, 800.

statement sharing the net profits before and after incorporation.