Page 267 - Corporate Finance PDF Final new link

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BRILLIANT’S Investment Accounting 267

What is cum-interest or cum dividend? How is ex-interest or ex-dividend treated in the
books of account?
H$‘-B§Q>aoñQ> ¶m H$‘-{S>{dS>|S> ³¶m h¡? AH$mC§Q> H$s ~w³g ‘| E³g-B§Q>aoñQ> ¶m E³g-{S>{dS>|S> go H¡$gm
ì¶dhma {H$¶m OmVm h¡?

OR
How is dividend from pre-acquisition profit treated in the Investment Account?
B§doñQ>‘|Q> AH$mC§Q> ‘| àr-E{³d{OeZ àm°{’$Q> go {S>{dS>|S> ‘| H¡$gm ì¶dhma {H$¶m OmVm h¡?
OR
How are bonus shares treated in the Investment Account?
B§doñQ>‘|Q> AH$mC§Q> ‘| ~moZg eo¶g© go H¡$gm ì¶dhma {H$¶m OmVm h¡?

In the books of the investing company a {Zdoe H$aZo dmbr H§$nZr H$s ~w³g ‘| EH$ n¥WH$
separate Investment Account is opened for each B§doñQ>‘|Q> AH$mC§Q> à˶oH$ {g³¶mo[aQ>r Ho$ {bE Imobm OmVm
security. It is ruled like a ledger account with h¡& Bgo EH$ boOa AH$mC§Q> Ho$ g‘mZ ‘mZm OmVm h¡ {Og‘|
some additional columns in each side. The for-
à˶oH$ nj ‘| A{V[a³V H$m°båg hmoVo h¢& B§doñQ>‘|Q> AH$mC§Q>
mat of Investment Account is given below:
H$m ’$m°‘}Q> ZrMo {X¶m J¶m h¡…
In the books of ….
Dr. Cr.
Date Particulars Nominal Int. or Cost Date Particulars Nominal Int. or Cost
Value Divid. (`) Value Divid. (`)
(1) (2) (3) (4) (5) (1) (2) (3) (4) (5)

Column 1 : Date of transaction is recorded in H$m°b‘ 1 : Bg H$m°b‘ ‘| Q´>m§Oo³eZ H$s {XZm§H$ [aH$m°S>© H$s
this column. OmVr h¡&
Column 2: Name of the account to be cred- H$m°b‘ 2: H«o${S>Q> ¶m S>o{~Q> {H$¶o OmZo AH$mC§Q> H$m Zm‘
ited or debited is written in this "To" ¶m "By" {à{’$³g Ho$ gmW Bg H$m°b‘ ‘|
column with Pre-Fix "To" or "By".
{bIm OmVm h¡&
Column 3: It is a memorandum column only. H$m°b‘ 3: ¶h Ho$db EH$ ‘o‘moa¢S>‘ H$m°b‘ h¡& à˶oH$
Nominal value of each transac- Q´>m§Oo³eZ H$s Zm°{‘Zb d¡ë¶y Bg H$m°b‘ ‘| ¶m
tion is recorded in this column ei-
ther in value or in quantitative Vmo d¡ë¶y ‘| ¶m ³dm{Q>Q>o{Q>d AW© ‘| [aH$m°S>© H$s
terms. OmVr h¢&
Column 4: It is a (double entry) income col- H$m°b‘ 4: ¶h B§doñQ>‘|Q> ‘| B§Q>aoñQ> ¶m {S>{dS>|S> [aH$m°S>©
umn to record interest or divi- H$aZo Ho$ {bE EH$ (S>~b E§Q´>r) B§H$‘ H$m°b‘ h¡&
dend from investment.
Column 5: It is a (double entry) cost/princi- H$m°b‘ 5: ¶h ~«moH$aoO EH«y$S> B§Q>aoñQ> Am{X Ho$ g‘m¶moOZ
pal/capital column to record ac- Ho$ níMmV² B§doñQ>‘|Q²>g H$s dmñV{dH$ bmJV [aH$m°S>©
tual cost of investments after ad- H$aZo Ho$ {bE EH$ (S>~b E§Q´>r) H$m°ñQ>/qà{gnb/
justment for brokerage, accrued H¡${nQ>b H$m°b‘ h¡&
interest, etc.