University:
University of Miami
Course:
ACC 211 | Principles of Financial Accounting
Academic year:

2019
Views:

223

Pages:

2
Author:

9LunarLullaby

Сатутки- PROFLE INCORPORATION Profit for the period sporton Compnuy CAME Jousineld to the date the into existence is neferred as porn timesporation profit on loce This profit/ loss of CAPITAL NATURE PROPIT Credited to Capital Reserve Less Debited to P&L te Thie deals with allocation of nesources/ expenses for 2 Periods le. Pre & Post Incorporation. BASIS OF APPORTIONMENT : Time Ratio Sales Ratin - Fixed Expenses Variable Expenses relating to pre-incorporation. Experbelongs to that period period & Vice Verse Company Audit fee - Post period Tax Audit Turnover Ratio ULSES OF PRE-INCORPORATION FROFIT: • To curcite off goodwill on incorporation To write off preliminary expended • To write off overvalued ackets. To issue bonus shares. • To pay up partly paid up shares. USES OF PRE INCORPORATION Loss: - > To set off against post incorporation. Profit > Addition to goodwill on acquisition. > Writing off capital profit