1. Mr. Ravi had 12% Debentures of Face Value ₹ 100 of M/s. Suresh Ltd. as current investments.
He provides the following details relating to the investments.
Date Particulars
1-4-2021 Opening balance 4000 debentures costing ₹ 98 each
1-6-2021 Purchased 2000 debentures @ ₹ 120 cum interest
1-9-2021 Sold 3000 debentures @ ₹ 110 cum interest
1-12-2021 Sold 2000 debentures @ ₹ 105 ex interest
31-1-2022 Purchased 3000 debentures @ ₹ 100 ex interest
31-3-2022 Market value of the investments ₹ 105 each
Interest due dates are 30th June and 31st December.
Mr. Ravi closes his books on 31-3-2022. He incurred 2% brokerage for all his transactions.
Show investment account in the books of Mr. Ravi assuming FIFO method is followed.
2.On 1.4.20X1, Mr. Krishna Murty purchased 1,000 equity shares of ` 100 each in TELCO Ltd. @
` 120 each from a Broker, who charged 2% brokerage. He incurred 50 paise per
` 100 as cost of shares transfer stamps. On 31.1.20X2, Bonus was declared in the ratio of 1:
2. Before and after the record date of bonus shares, the shares were quoted at
` 175 per share and ` 90 per share respectively. On 31.3.20X2, Mr. Krishna Murty sold bonus
shares to a Broker, who charged 2% brokerage.
Show the Investment Account in the books of Mr. Krishna Murty, who held the shares as
Current assets and closing value of investments shall be made at Cost or Market value
whichever is lower.
3. On 1st April, 20X1, XY Ltd. has 15,000 equity shares of ABC Ltd. at a book value of ` 15 per
share (nominal value ` 10 per share). On 1st June, 20X1, XY Ltd. acquired 5,000 equity shares of
ABC Ltd. for ` 1,00,000. ABC Ltd. announced a bonus and right issue.
(1) Bonus was declared, at the rate of one equity share for every five shares held, on
1st July 20X1.
(2) Right shares are to be issued to the existing shareholders on 1st September 20X1.
The company will issue one right share for every 6 shares at 20% premium. No
dividend was payable on these shares.
(3) Dividend for the year ended 31.3.20X1 were declared by ABC Ltd. @ 20%, which
was received by XY Ltd. on 31st October 20X1.
He provides the following details relating to the investments.
Date Particulars
1-4-2021 Opening balance 4000 debentures costing ₹ 98 each
1-6-2021 Purchased 2000 debentures @ ₹ 120 cum interest
1-9-2021 Sold 3000 debentures @ ₹ 110 cum interest
1-12-2021 Sold 2000 debentures @ ₹ 105 ex interest
31-1-2022 Purchased 3000 debentures @ ₹ 100 ex interest
31-3-2022 Market value of the investments ₹ 105 each
Interest due dates are 30th June and 31st December.
Mr. Ravi closes his books on 31-3-2022. He incurred 2% brokerage for all his transactions.
Show investment account in the books of Mr. Ravi assuming FIFO method is followed.
2.On 1.4.20X1, Mr. Krishna Murty purchased 1,000 equity shares of ` 100 each in TELCO Ltd. @
` 120 each from a Broker, who charged 2% brokerage. He incurred 50 paise per
` 100 as cost of shares transfer stamps. On 31.1.20X2, Bonus was declared in the ratio of 1:
2. Before and after the record date of bonus shares, the shares were quoted at
` 175 per share and ` 90 per share respectively. On 31.3.20X2, Mr. Krishna Murty sold bonus
shares to a Broker, who charged 2% brokerage.
Show the Investment Account in the books of Mr. Krishna Murty, who held the shares as
Current assets and closing value of investments shall be made at Cost or Market value
whichever is lower.
3. On 1st April, 20X1, XY Ltd. has 15,000 equity shares of ABC Ltd. at a book value of ` 15 per
share (nominal value ` 10 per share). On 1st June, 20X1, XY Ltd. acquired 5,000 equity shares of
ABC Ltd. for ` 1,00,000. ABC Ltd. announced a bonus and right issue.
(1) Bonus was declared, at the rate of one equity share for every five shares held, on
1st July 20X1.
(2) Right shares are to be issued to the existing shareholders on 1st September 20X1.
The company will issue one right share for every 6 shares at 20% premium. No
dividend was payable on these shares.
(3) Dividend for the year ended 31.3.20X1 were declared by ABC Ltd. @ 20%, which
was received by XY Ltd. on 31st October 20X1.
