Investment Accounting a a Financial Accounting (Sem - V) 4, Investment Accountin, October - 2003 (1) Mr, Mehta fumishes the following information regarding his holding in 123% IDBI bonds. (18) 01-04-01 Opening Balance-Nominal value of 12% bonds Rs. 2,00,000, cost Rs. 1,90,000. Three months’ interest had accumulated as interest was receivable half yearly on 30th June and 31st December. 81-08-01 He purchased a further Fis. 80,000 of the bonds at Rs. 96 cum interest. 81-10-01 Sold 700 12% bonds of Rs. 100 each at is. 94 ex-interast. 28-02-02 Sold 300 12% bonds of Fs. 109 each at Rs. 96 cum intrest. The face value of each bond was Rs. 100. Prepare 12% IDBI bonds account for the year ended 31-3-02. Use weighted average. October - 2004 2) Mr. Arvind entered into folowing transactions of purchase and sale of Equity Shares of Aspi Ltd. The shares have paid up value of Fs. 10 per share, (16) Date No. of Shares Terms 01-01-02 600 Buy @ Rs. 20 por share 15-0302, 900 Buy @ Rs. 25 per share 20-05-02 1,000, Buy @ Rs. 28 per share 25-07-02 2,500 Bonus shares received 20-12-02 1,500 Sale @ Rs. 22 per share 01-02-08 1,000 Sale @ Rs. 24 per share . ‘Adtional information: (1) On 15th September 2002, dividend @ Rs. 3 per share was received forthe year ended 3st March 2002, (2) On 12th November 2002, the company made a rights Issue of equity shares in tho ratio of one share for five shares held on payment of Rs. 20 per share. He subscribed to 60% of the shares and renounced the remaining shares on receipt of premium, (of Rs. 3 por share. (3) Shares are to be valued on weighted average cost basis. ‘You are required to prepare Investment Account forthe years ended 31-2-200e and 31-9-2008, ‘April - 2005 (@) On tt January 2004, 1000 - 12% Debentures of Ris. 100 each of Shiva Ltd. were held as investment by Mr. Dharmosh at a cost of Fe. 91,000. inforstis payable on 3tst December. (8) On tst Apri 2004, Ris. 20,000 of such debentures were purchased by Dharmesh @ Rs. 98 cuminleres. On tst September 2004, Fis. 30,000 of such debentures were soldat As. 96 ex:interet On 1st December 2004, Rs. 50,000 of such debantures were soldat RS. 99 cumintorest. Interest is received on due date. Prepare investment account for 12% debentures of Shiva Li. In the books of Mr. Dharmesh valuing closing stock @s on ist December 2004 applying AS-13. The debentures were quoted al Rs. 93 on Stst December 2004 ‘April - 2006 (4) Banglore Investments hold 1200-6% Debentures of Rs. 100, each in MINERVA Ltd. as on 1st Apll 2004 ata cost of Rs. 1.40,000. Interest is payable on 30th June and 3st December each year. Other detals are as under (18) Date rears 162008 400 Debervres ae purchased cum inert at =, 40,900 1-11-2004: 400Dobontues ar purchased ex-rerost et Fs. 35400 0-1-2004: 600 Deberwes are old curios or As. 64500 31122004: 600 Deberues are old ex interest or As 77,300 Prepare Investment Account valuing closing balance on 313-2005 at cost or market price whichever is lower. The debentures are quoted at par on 31-3-2005. e April - 2007 (6) Miss Bhagewati entered into the folowing transactions of purchase and sales of 12 % Debentures of Rs. 100 each of Mans Lid Interectis payable on SOth June and 31st Decernbeavery year. Transactions areas under (16) Date No.of Debentured Toms roca ‘00 | ‘Opeing Baars aa cost of. 76,000 | ovos-2005, 00 Sol at. 105 cach oun - rarest or-co 2005 70 Purchased ots, 08 each Ex- terest or-t2. 2005 +00 Purchased at, 108 each Cum Ierest ieee) so Soda Fs £7 each erst Prepare Investment Account of T2%e Dabentures Tn the Books of Bhagawall or the year ended Sist March, 2006, The market value ‘on Stst March, 2006 was Fs. 67,500 ofthe said investment. Apply AS-13.Investment Accounting 2 Financia Acmmaring (Se October - 2007 {@) Wt, Mandar holds as on 1st, Apel 2005 Fi. 75,000 (Gost eros Ris, 78,000) 8% Govesree Securities as Investment on whi Me Mane tig ra yoaty on 20th June and 31st December every year, The folowing wansartons took place during t ‘accounting year ended 31st March, 20068. « Purchases 1). On 1-5-2005 Face Value Rs. 30,000 @ 98 Cur-Interest — {i _ On 1-11-2005 Face Value Rs. 45,000 @ 101 Excinterest Sales: (0) On 1-8-2006 Face Value Rs. 36,000 @ 97 Cum-tnterest, — {i)_0n 1-2-2008 Face Value Re 24,000 @ 102 Ex-interest. Market price of investment at 1% discount on 3st March, 2006, We oP investment Account closing Iton 31s March, 2006 inthe books of Mr. Mander lnvastmonts =e tobe valued at cos ‘at Matket Value whichever Is less. (Apply AS 13) April - 2008 (7) on tot Apt, 2008 Mr. Mayut ad 30,000. Equity share in Jl Lc. ata Dookevelog 6 4,50,000 (Face value Rs. 10 per she oe ce 2008, he purchased another 5000 shares ofthe company for Rs. 80,000. Oona Jal id announced a bonus issue of equly shares inthe rato of one share fr sven shares held on 16th AU 2008. 2008, august, 2008 the Company made a ght issue in tho ratio of thea ehare for EIA Stes et payment of Rs. 15 On St Augie jr te payment was 20th Saptombo, 2006, Mr. Mayur subscribed to 2/S of the ht sharas and sold remai Stale entitlement to Vinayak for a consideration of is. 2 per share. os or soca, 2008 roosived dividends rom Jal Lid, @ 20% fr the year ended Stst March 2008. Dividend for shares aca by him on 22nd dune, 2006 are to be adjusted against the cost of purchase, Oy ino sereinber, 2008. Meyur sold 90,000 Equly shares at @ premium of Ris. 5 per snare, 08 foe required to pre On sth November: Five books of Mr. Mayu. Assume that tho books of accounts ae cased on Stst March, 2007 and st valued at weighted average cost (@ uring the year ended st March, 2008, A company had aoguied shares of TSecom follows: Dae of Acquistion No.of Shares Purchase Cost Per Share Rs. (0405-2005 00 55.00 2608-2005 0 cao 612.2008 1000 roo p02 2008 750 | 7500 con 18:09-006 Company sald 1000 saree a Fs BO per sro, Calculato pro oloss onsale of shaves. October - 2008 {@) On 1-4-2008 mr. Abhishek had 10,000 equty shares (of Rs. 10 each) n Ral Entertainment Ltd.at the cost of is. 160,000. On 1-7-2008 he aequired 4,000 more shares in the same Company for Fs. 80,000. (0n.81-7-2006 he further acquired 6,000 more shares at is. 22 per Share one, Entertainment Ltd. announced borus shares tothe then equity shareholders inte rio ‘of 1 bonus sh: even’ snaree held as on 8-8-2006, Abhishek recelved the bonus sharas on 2282006; a aero al Enotalnmert Ld. nsued ght shares tothe equity aharehokders.on the folowing terms: {@) _ Fight shares tobe issued to the exiting shareholders as on 31-€.2008 (0) Fagntofered was atthe rate of Rs. 15 por share inthe rato 1 shao for every 5 shares held. Full amount was payable bofore 18-10-2008, {e) Sharerolcare would be entited to renounce ther eilterent ther wnoly orn part le Ris outsiders. {G)_Abtishek exorcisod his right of option under the isu fr 3.000 shares nd Ad oalance to Mr. Raj @ Rs. 4 per she soe roe Ral EntorcinmertL1c. declared the dviend @ Re 4 per share forthe year oreing 1-3-2006. Abhishek re ooo ee 0.2008, On 10-1-2007 Abhishek sols 7,000 shares @ Fs. 40 por share. Prepare investments alc books of Abhishek for the year ended 1-3-2007. April - 2009 oh 1-4-2007 Mr. Ajay had 90,000 equty shares in Vipro Lid. face value ofthe share was Re. 10 9a" bet purchase pr Oe care. On 1-7-2007, Ajay purchased 6,000 eddonal equity shares of ho Bape Corey ‘or a price of Fs. er 7 BOOT the directors ofthe company announced a bonus and rights fssve- Bonus was ‘declared atthe rate ety share for every bx shares held. Bonus shares were received on &-6-2007 Fight issue was @s por the folowing terms: {@) Fight shares to be issued to the existing holders on 17/08/2007. {B) Fights offered wore atthe rate of one share for every three shares held et Fis: 15 Per share, Full amount was pay 007. (6) Existing shareholders may othe extent of thelr ntitement, thor wholly oF PaP transfer their rights to outsiders. (G pjay exercised Ns option and subscribed for 60% of is enilement and the Balance of rights, he sold to Vik ‘consideration of Re. 1.50 per share.Investment Accounting ge a Financial Accounting (Sem -V) (©) Dividend for the year ended 31/08/2007 at the rate of 14% was declared by the company and received by Ajay on 22/10/2007. (9) _0n01/11/2007 he sold 25,000 shares at Fis. 15 per share. Prepare investment account of equity shares in Vipro Ltd. for the year ended $1/03/2008 in the books of Mr. Ajay. Apply AS - 18. The market price of an equity share was Rs. 14 as on 31/03/2008. October - 2009 (17) Mr. Sunil submits the following details regarding his holdings in 8% Government Bonds of Fs. 100 each. (18) fs) ‘onRRROOT ‘Opening Balance: Nominal vaio f Bonds 50,000 Cost ofthe sad Bonds 48.500 Purchases: 1052007 Face valve Rs. 75,000 for Fs, 76:00 cum erst owis12007 Face valve Ri. 112500 at Rs. 99 exciterast Soles: ovoa2007 Face value Ris. 75,000 at Rs, 102 cum intrest ovso%2007 Face value Ris. 90,000 a Rs. 98 Exintrest Interest is payable half yearly on GOth June and 31st December every year. ‘The market price of investment as on 31st March 2008 was Rs. 70,000. Prepare 8% Gavernment Bonds Account in the books of Mr. Sunil for the year ended 31st March 2008, Note: Use Weighted Average Method. (12) Attempt any four from the folowing: (18) {@) Dilip Ltd. purchased its 9% own debentures (Face value Rs. 100 each) as below for investment: (On ‘st July 2007, 180 own debentures at Re, 99 ex-interest, . i) On tst March 2008, 280 own debentures at Ris, 101 cum-interest. Interest is payable on 30th Soptomber and 3tst March every yea. ass Journal Entries to record the above two purchase transactions. April - 2010 (18) On 1st Aoi, 2009, 200 6% debentures of Rs 100 each of Excl! Lis, were nad a estan by Mr Tushar at acct of Fi 18,200. (16) Excelent Lid, pays interest on 1st May and tt er every year. ‘The foloning other transactong were entered by him during the year ended 31st March, 2010 in regard to these Debentures. aia No.of Debentures Tensaction ate tA 2008 700 Sale Fs. cumineerest 1st Oxeber, 209 a0 Purchase Fs. 106 exirtorest st Deconber, 208 200 Parcase Ps. 97 cuminerest {st Febnary 2010 “00. Sale Bs. 97_ocitoes ‘You are required to prepare investment in 62% Debentures in Excelent Lid. account for the year ended Sist March, 2070 as it would appear in the books of Mr. Tushar. (Apply AS 13) October - 2010 ring the year ended 31st March, 2010 Mr. Virag bought and sold the folowing 12% Debentures of Rs, 100 each of Limozine Ltd. terest being payable by Limazine Lid. on 1st April and 1st October each year. (18) Date Particulars ‘ste, 2000 Bought 300 Debentures at Rs. £2 ex-etorost ‘8 Septombor, 2000, ‘Bought 100 Debentures at Ris. 94 cum interest ‘etDocomber, 2000 ‘Sold 200 Debentures at Pi. 95 exintrest ‘stFebruay, 2010 Bough 150 Debentures at Rs. 8 cumnteret, Books are closed on Stst March every year. Market price on 31st March, 2010 was Rs. 90 Debentre. You are required to prepare invesiment in 12% Debentures in Limazine Lid. Account forthe year ending Stst March, 2010 in the books of Mr. Virag. (APBY AS 19). April - 2011 (15) On ‘st April, 2009, Mr. Dhana Balu held 500, 6% Central Government Bonds of Fs. 100 each at a cost of Rs. 48,000. Interest is payable on 30th June and 31st December every year. He entered into following transactions in respect of 6% Central Government Bonds during the year encing on 31st Mar. 2010. (16) Purchases: (2) On 1st May 2009, Face Value of Rs. 10,000 at Rs. 102 Cum-interest. 1oe (b) On tst September 2009, Face Value of is. 80,000 at Rs. 105 Ex-interest. Sales: (On fst August 2009, Face Value of Rs. 15000 at Rs. 104 Cum-intorest. (ii) On tt February 2010, Face Value of Rs. 15,000 at Rs. 102 Ex-InterestInvestment Ascounting a “4 Financial Accounting (Sem V) Show 6% Centrel Government Bonds Aocount in the books of Mr. Dhana Balu for the year ended Sist March 2010. (Investments are o bo valued at weighted average cost) October - 2011 (16) On 1-4-2009 Mr. Vinay had 40,000 Equity Shares of Rs. 10 each of Spectrum Lid, purchased at a cost of Ris. 15 per share. (18) On 7st May 2009, he purchased 10,000 Equity shares of Satyam Lid. (Faco Value Rs, 10 eact) at Re. 25 per share, On ine ‘samo day he also purchased 20,000 Equity Shares of Spectrum Lid. ats. 12 each, On ist July 2000 ho sold 2,000 Equity Shares of Satyam Lic. @ Re. 22 por share. Board of Directors of Spectrum Lic announced rights issue of equity share in ratio of one share for every three shates held at Rs. 20 each, tll amount was payable by Sts August 2008. Shareholders were allowed to renounce thelr right either in part or ful tothe outsider. Mi. Vinay renowned 40% of his rights at Fs. 5 per share and subscribed forthe balance. On 1st December 2009 Mr. Vira sold 5,000 oxy sharss ot ‘Spectrum Lid, and 2,000 equity shares of Satyam Lid. @ Fs. 30 and @ Fi. 27 per share respectively, ‘You are required to prepare: (0) Investment in equty shares of Spectrum Lid. Ale and (i) investment in equty shares of Satyam Lid. Vo Inthe books of Mr. Vinay forthe year ended 31st March, 2010. April - 2012 (47) On 1-4-2010 Aliya had 60,000 equily shares In Lid. The face value of the shares wore & 10 each but thelr book value was € 24 per shar, © (On 1-6-2010 Aditya purchased 10000 equiy shares in T Lid. ata premium of €6 per share, On 1-7-2010, th crectos of T Li. issued bonus shares atthe rata of one share for every thre sharos held. ‘On 4-01-2011 Aditya purchase 5000 right shares in T Ltd. of 10 each at 15 per share, ‘On 31-01-2011 he sold 20000 equiy shares in T Lid. of 10 each at € 30 por share how Investment Account as it would appear in Aaltya's books forthe year ondod 31-08-2011, April - 2014 (18) Yr. Jayant holds 2.400, 6% Debentures of€ 100 each in Gorn’ Lt, as on 01-04-2012 at a cost of € 280,000. Interest is payable jn 30th June and Stst December every year. Other deta ar as follows: (5) (On 01-06-2012, 800, 6% Debentures are purchased cum-interest at € 81,600. (i) On 01-11-2012, 800, 6% Debentures are purchased ox-interest at € 76,800, Ail) On 80-11-2012, 1200, 6% Debentures are sold curm-interest for & 1,29,000. (v)_ On 31-12-2012, 1600, 6% Debentures are sold ex-interest for &1,54,600, Prepare 6% Debentures account in the books of Mr. Jayant valuing closing balance on 31-03-2018 at cost or market price ihichever is lover. The Debentures are quoted at par on 31-03-2013, (Interest on 31/12/2012 to be recorded after giving effect to the sale transaction) October - 2014 (18) The folowing transactions of Mr. Narayan took place during the year ended 31.08.2014 (5) ‘stApfi2013 Purchased Re. 12,00,000, 8% Bonds at Rs. 80.50 cur-intrest. Interest s payable on 1st November and tet May every year. Race Value of each Bond is Rs. 100. 12th April 2013 Purchased 1,00,000 Equity Shares of Re. 10 each in X Lid for Ris. 40,00,000. ‘tstMay2013 Received hall-years interest on 8% Bonds, 15th May 2013 Lid, made Bonus esue of three Equity shares for every two shares held 15th June 2013 Mr. Narayan sold 1,25,000 Bouns shares for is. 20 each. ‘stOot.2013 Sold Rs. 3,00,000, 8% Bonds at Rs. 81 exintorest. ‘stNov.2013 Received halt-year’s bond interest. Prepare 8% Bond account and Equity shares in'X' Lid. account in the books of Mr. Narayan for he year ended 31.03.2014. (20) The folowing transactions of Miss Naina took place during the year ended 31/03/2014, ” Date “Transaction ‘eipazors | Prchased 700000 Egy Sees oR 10 enh n ‘ARC Lior 500000 {69052013 | "ABC" Lx mg a Bos nae of Equity Shares freer 2 shares hei 062019 _| nana sols 125,000 Bors shares fori. 20 each. Prepare ‘Equily Shares in ABC Lic. Account in the Books of hiss Naina for tho year ended S1S/2014- October - 2015 i (21) On 1st Apri, 2014 Mr. Mohandas held 400, 6% debentures of Ris. 100 each of Best Li, cost being Fs. 96,400. Best Lid. pays intorest on doth June and Stst December every year. The folowing oer transactions were onteved by Mi. Mohandas during the ‘yar ended 3st March, 2016 in regard to these debentures (15) Date No of Debentures “ransection Fat a | aA 2014 200 Sai eurhtrest i {st October, 2014 20 Purse ‘ober eorest | | st Decanter 2014 «0 Purchase 87 cm: st Februar, 2015 200 Sale wo Interest | Saas eeeInvestment Accounting a “6 Fieanell Aosountng (Sem-¥) ‘You are required to prepare investment In 6% debentures in Best Lid. Account for the year ended Sst March, 2015, as it would appear in the books of Mr. Mohandas. Market value of his entre investments as on 31/09/2016 was Fi. 66,200. October - 2016 ” (22) Mr. Ashok entered into following transactions of Equity Shares of Rs. 10/- each of Anmol Lid. 5) Date No.of shares Deals oroWenTs 1600 Fs, 84800 Cot oping] +sn52015 1000 Purchase @ Fs. 2 per sare 1708 00 Bonus shares rosed ssiieo1s 1800 Sale @ Rs. 2-per share onna2016 1000 ‘Sale @ Pi. 24 per share ‘Additional information: (1) On tat September 2015, dividend @ Re. 3/- por share was received forthe year ended 31/03/2016. {@) On 10th November 2015, the company made aright issue of equity shares in he rato of one share for every vo shares hold ‘on payment of Rs, 2)- per share, Mr. Ashok subsorbod for 50% ofthe shared and sold remaining of his rights @ Rs. - por shar. You are required to propare Investment in Equity Shares A/c inthe books of Mr. Ashok forthe year ended 31/03/2016, (Round igure tothe nearest Rupee.) (22) Fdlowing Transactions appear in the books of Mr. Joshi or 12% Govornmont Bonds of Rs. 100/- each, Interest 5) is/payable on 30th June & 31st December every year. Transaction during the year ended 31/03/2016 are as follows Date No.of Bonds Deals o1o42018 2400 ‘pring Balance aa cost of. 228,007 voezons 00 Sold @ Rs. 105 each um rest ona 2018 2100 Purchased @ Re. 98 each Exes ovianots +200 Purchased @ Fs. 108 cach Currsret oa016 zo Sold @ Ris. 97 each Exrtorst ) Prepare 12% Government Bond Account Inthe books of Mr. Joshi for the year ended ST/OS/2076. Market value of the above invesiment on 31/03/2016 was Ps. 2,08,456/-. = (Figures to be Rounded off othe nearest rupee) October - 2017 (24) On 1st Api, 2016 Mr. Rejash holds 20,000 Equity Shares of €10 each in H Ld, ata cost of €9,00,000. ” ‘On 1st Ju, 2016 he purchased 4,000 addtional shares ofthe same Company ata cost of €64,000. ‘On tet October, 2016 Company issued bonus of one share for every six shares held as on tha da On 1st January, 2017 he purchased right shares, announced by Company atthe rete of two shares for ever fve shares held as on that date at £12 each. ) (On tet Janvary, 2017 he purchased 2,000 addtional shares ofthe samme Company at a cost of €36,000. st (On 1st February, 2017 he sold 1,000 shares of €20 each Prepare Investment in Equily Share Account inthe books of Mr. Rajesh forthe year ended 31st March, 2017 (25) Mr. Shivam holds 1,000 - 10% Debentures of €100 each in TM Lid. as on ‘st Api, 2016 a a cost of €1,20,000. interests payable half yeary on 20th September and 31st March every year. Transactions forthe year ae as follow: (5) Date Pertcular ‘Number of Debentures ato @) aqogzo16 | — Purtased 00 12 Cum rest ornoz018 . | Purchased 500 7 Exists stant Sod 700 10.Cum rest ounero17 Sold 00 8 Echt ” owrazor7_| purchased 200 105 cum riers ‘The books of accounts are closed on Bist March every year. Prepare Investment in 10% Debenture Account in the books of Shivam for the year ended 31/09/2017. Market valu of the above investment on 31st March, 2017 was €1,30,000. ue