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268 Corporate Finance BRILLIANT’S
Purpose/Objectives of Investment B§doñQ>‘|Q> boOa Ho$ VmËn¶©/CÔoí¶
Ledger
Investment ledger is a special type of led- B§doñQ>‘|Q> boOa, boOa H$m EH$ {deof àH$ma h¡ {Ogo
ger which is used by the investing company to à˶oH$ B§doñQ>‘|Q> Ho$ g^r {ddaUm| H$mo [aH$m°S>© H$aZo Ho$ {bE
record all the details of each investment. The
main objectives of maintaining investment led- {Zdoe H$aZo dmbr H§$nZr Ûmam Cn¶moJ {H$¶m OmVm h¡&
ger are as follows: B§doñQ>‘|Q> boOa V¡¶ma H$aZo H$m ‘w»¶ CÔoí¶ {ZåZ h¢…
It helps in proper recording of each secu- ¶h à˶oH$ {g³¶mo[aQ>r H$s n¥WH$ go C{MV [aH$m°{S>ªJ
rity separately. ‘| ghm¶Vm H$aVm h¡&
It facilitates, the collection of interest and ¶h ã¶mO VWm {S>{dS>|S> Ho$ g§J«h H$mo gw{dYmOZH$
dividend as and when they are due. ~ZmVm h¡ O~ do S²>¶y hmo OmVo h¢&
It helps to determine the value of security ¶h AH$mC§qQ>J nr[a¶S> Ho$ A§V ‘| {g³¶mo[aQ>r Ho$
(ies) at the end of the accounting period. ‘yë¶ H$m {ZYm©aU H$aZo ‘| ghm¶Vm H$aVm h¡&
It helps to determine the profit or loss on ¶h {H$gr {g³¶mo[aQ>r Ho$ {dH«$¶ na bm^ ¶m hm{Z H$m
sale of any security. {ZYm©aU H$aZo ‘| ghm¶Vm H$aVm h¡&
A. Purchase/Sale of Investment on the A. ã¶mO Ho$ ^wJVmZ H$s {XZm§H$ na B§doñQ>‘|Q> H$m
Date of Payment of Interest H«$¶/{dH«$¶
When an investment is purchased/sold on O~ EH$ B§doñQ>‘|Q> H$mo ã¶mO H$s {XZm§H$ na IarXm/
the date of interest, the quotation price con- ~oMm OmVm h¡ Vmo H$moQ>oeZ ‘yë¶ ‘| H$moB© ã¶mO Zht hmoVm h¡&
tains no interest. Therefore, the allocation of a AV… bmJV VWm amOñd Ho$ ~rM EH$ H$moQ>oS> ‘yë¶ H$m
quoted price between cost and revenue does
not arise. The entire quoted price represents Amd§Q>Z CËnÝZ Zht hmoVm h¡& g§nyU© H$moQ>oS> ‘yë¶ {Zdoe H$s
the cost of investment. bmJV H$mo àX{e©V H$aVm h¡&
Journal Entries / OZ©b E§Q´>rO
1. When investment is purchased at interest date
O~ B§doñQ>‘|Q> H$mo ã¶mO H$s {XZm§H$ na IarXm OmVm h¡&
Investment Account Dr. [(Quoted price + Brokerage)
To Bank account × No. of Investments
2. When interest/dividend is received after purchase
O~ IarX Ho$ níMmV² ã¶mO/{S>{dS>|S> n«má {H$¶m OmVm h¡&
Bank Account Dr.
To Interest/Dividend Account
3. When investment is sold at interest date
O~ {Zdoe H$mo ã¶mO H$s {XZm§H$ na ~oMm OmVm h¡&
Bank Account Dr. [(Quoted price - Brokerage)
To Investment Account × No. of Investments]

