PQR Ltd. was incorporated on 1 st May, 2011 to takeover the business of Kapil & Co, from 1 st January, 2011. The following particulars are extracted from the statement of profit and loss of PQR Ltd. for the year ende

PQR Ltd. was incorporated on 1 st May, 2011 to takeover the business of Kapil & Co, from 1 st January, 2011. The following particulars are extracted from the statement of profit and loss of PQR Ltd. for the year ended 31 st December, 2011: ₹ (i) Gross profit 10,64,000 (ii) Interest on investment 36,000 (iii) Rent and taxes 90,000 (iv) Salaries including manager's salary of ₹85,000 3,31,000 (v) Carriage outwards 14,000 (vi) Printing and stationery 18,000 (vii) Interest on debentures 25,000 (viii) Sales commission 30,800 (ix) Bad debts (related to sales) 91,000 (x) Underwriting commission 26,000 (xi) Preliminary expenses 28,000 (xii) Audit fees 45,000 (xiii) Loss on sale of investment 11,200 (xiv) Net profit 3,90,000 Prepare a statement showing allocation of pre-incorporation and post-incorporation profits after considering the following information : Gross profit ratio was constant throughout the year. Sales for January and October were 1½ times the average monthly sales while sales for December were twice the average monthly sales. Bad debts are shown after adjusting a recovery of ₹7,000 of bad debts for a sale made in July, 2008. Manager's salary increased by ₹2,000 per month from 1 st May, 2011. All investments were sold in April, 2011.