A company incorporated on 1st April 2001 took over a running business from 1st January, 2001 and prpared its final accounts on 31st December, 2001. Its grows profit was Rs. 24,000 and sales were as under:
January - Twice the average sale
February - Equal to average sale
May to August - $${\frac{1}{4}^{{\text{th}}}}$$ of average sale, each month
October and November - 3 times the average sale each month
What is the Gross Profit prior to incorporation:
A. Rs. 7,000
B. Rs. 8,000
C. Rs. 7,500
D. Rs. 8,500
Answer: Option A
This Question Belongs to Commerce >> Accounting
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