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266 Corporate Finance BRILLIANT’S

chased through banks, instead of brokers. In IarXm Om gH$Vm h¡& BZ pñW{V¶m| ‘| EH$ {~OZog H$mo EH$
such cases, a business has to pay a banker's ~¢H$a Ho$ H$‘reZ H$m ^wJVmZ H$aZm hmoVm h¡&
commission.
When securities are purchased, the above O~ {g³¶mo[aQ>rO IarXr OmVr h¢ Vmo Cnamo³V 춶
expenses become part of the total cost of secu- {g³¶mo[aQ>rO H$s Hw$b bmJV H$m ^mJ ~Z OmVm h¡ AWm©V²
rities, i.e., the actual cost of securities are added {g³¶mo[aQ>rO H$s dmñV{dH$ bmJV H$mo ~«moH$aoO ¶m ~¢H$a Ho$
with brokerage or banker's commission (as the H$‘reZ Ho$ gmW Omo‹S>m OmVm h¡ (O¡gr pñW{V hmo) VWm
case may be) and the stamp duty to arrive at
the real cost of the securities. But when the se- {g³¶mo[aQ>rO H$s dmñV{dH$ bmJV na nhw§MZo Ho$ {bE ñQ>mån
curities are sold, the amount of brokerage or S²>¶yQ>r Omo‹S>r OmVr h¡ {H$ÝVw O~ {g³¶mo[aQ>rO ~oMr OmVr h¡
banker's commission is deducted from the sale Vmo ~«moH$aoO ¶m ~¢H$a Ho$ H$‘reZ H$s am{e {g³¶mo[aQ>rO go
proceeds realized to ascertain the net realisation ZoQ> [a¶bmBOoeZ {ZH$mbZo Ho$ {bE H$s J¶r {dH«$¶ à{H«$¶m
from securities. go KQ>m¶r OmVr h¡&
Note: The brokerage is calculated as a per- ZmoQ>… ~«moH$aoO {Zdoe Ho$ ~mOma ‘yë¶ Ho$ EH$ à{VeV
centage of the market value of the investment. Ho$ ê$n ‘| JUZm {H$¶m OmVm h¡&

Sale and Purchase Price of Invest- B§doñQ>‘|Q> H$m H«$¶ VWm {dH«$¶ ‘yë¶
ment
1. At par price: When investments are pur- 1. EQ> nma ‘yë¶: O~ B§doñQ>‘|Q²>g H$mo ’o$g d¡ë¶y na
chased or sold at face value, this purchase or IarXm ¶m ~oMm OmVm h¡, Bg H«$¶ ¶m {dH«$¶ H$mo EQ> nma
sale is called at par, as to purchase a share of H$hm OmVm h¡ ³¶m|{H$ < 100 Ho$ eo¶a H$mo < 100 na
` 100 at ` 100. IarXm OmVm h¡&
2. At discount price: When investments 2. {S>ñH$mC§Q> ‘yë¶ na: O~ B§doñQ>‘|Q²>g H$mo ’o$g
are purchased at less than face value, this is d¡ë¶y go H$‘ na IarXm OmVm h¡ Vmo ¶h {S>ñH$mC§Q> na H«$¶
purchase at discount, as a share of ` 100 is pur- h¡ ³¶m|{H$ < 100 H$m eo¶a < 98 ‘| IarXm OmVm h¡& Bgr
chased at ` 98. In the same way a share of ` 100 àH$ma < 100 H$m eo¶a < 95 ‘| ~oMm Om gH$Vm h¡& ¶h
may be sold at ` 95. This is sale at discount. {S>ñH$mC§Q> na {dH«$¶ h¡&
3. At premium price: When investments 3. àr{‘¶‘ ‘yë¶ na: O~ B§doñQ>‘|Q²>g H$mo ’o$g d¡ë¶y
are purchased at above face value, it is known go A{YH$ na IarXm OmVm h¡ Vmo Bgo àr{‘¶‘ na H«$¶ H$hm
as purchase at premium; as a share of ` 100 is OmVm h¡; ³¶m|{H$ < 100 H$m EH$ eo¶a < 102 ‘| IarXm
purchased at ` 102. In the same way a share of OmVm h¡& Bgr àH$ma < 100 H$m EH$ eo¶a < 105 ‘| ~oMm
` 100 may be sold at ` 105. This sale is sale at
premium. Om gH$Vm h¡& ¶h gob àr{‘¶‘ na gob h¡& 
INVESTMENT ACCOUNTING
B§doñQ>‘|Q> AH$mC§qQ>J

Q.30. How do you prepare investment account? What are the main objectives of maintaining
an Investment Account?
Amn B§doñQ>‘|Q> AH$mC§Q> H¡$gm V¡¶ma H$aVo h¢? EH$ B§doñQ>‘|Q> AH$mC§Q> V¡¶ma H$aZo Ho$ ‘w»¶ CÔoí¶ ³¶m h¢?
OR