Q1. Eastern Company was incorporated on April 1, 2015. It had acquired a running business of Irwin Company with effect from January 1, 2015. During the year 2015, the total sales were 3,200,000. The sales per month in the first half year were half of what they were in the later half year. The net profit of the company, 6,00,000 was worked out after charging the following expenses: Depreciation 2,00,000, (ii) Directors' fees 140,000, (iii) Preliminary expenses 40,000, (iv)Office expenses 120,000, (v) Selling expenses 240,000 and (vi) Interest to vendors up to July 12,000. You are required to ascertain a Gross profit of the company b Allocate profit in pre-incorporation and post-incorporation for the year ended Dec 31, 2015