Page 271 - Corporate Finance PDF Final new link
P. 271

NPP













                  BRILLIANT’S                     Investment Accounting                             271



                                 Cum-Interest:

                                     Payment to                 Quotation
                                                    
                                       Seller                     Price


                                                          Cost      Interest Accrued

                                 Ex-Interest:

                                     Payment to                 Quotation         Accrued
                                                                            +
                                       Seller                     Price           Interest


                                                           Cost
                      Note:                                       ZmoQ>…
                    In case of government security, the price   JdZ©‘|Q> {g³¶mo[aQ>r H$s pñW{V ‘| H$moQ> {H$¶m J¶m
                      quoted  is  ex-interest  unless  otherwise  ‘yë¶ E³g-B§Q>aoñQ> h¡ O~ VH$ {H$ AݶWm Z ~Vm¶m
                      stated.                                     Om¶o&
                    In  case of  non-government security,  the   Zm°Z-JdZ©‘|Q> {g³¶mo[aQ>r H$s pñW{V ‘| H$moQ> {H$¶m
                      price quoted is cum-interest unless other-  J¶m ‘yë¶ H$‘-B§Q>aoñQ> h¡ O~ VH$ {H$ AݶWm Z
                      wise stated.
                                                                  ~Vm¶m Om¶o&
                  (i) Cum-Interest/Dividend  Purchases        (i) H$‘-B§Q>aoñQ>/{S>{dS>|S>  nM}gog
                      When securities are purchased 'Cum-in-      O~ {g³¶mo[aQ>rO IarXr OmVr h¢ Vmo nM}g H$s E§Q´>r
                  terest' care must be taken at the time of pass-  H$aVo g‘¶ 'H$‘-B§Q>aoñQ>' H$s gmdYmZr aIZm Amdí¶H$
                  ing entry for purchase. In this case quotation  hmoVm h¡& Bg pñW{V ‘| H$moQ>oeZ ‘yë¶ ‘| bmJV Ho$ gmW bJm
                  price consists of cost plus accrued interest. In-
                  vestment account will be debited with the cost  ã¶mO ^r gpå‘{bV hmoVm h¡& B§doñQ>‘|Q> AH$mC§Q> H$mo Ho$db
                  only and interest account will be debited with  bmJV Ho$ gmW S>o{~Q> {H$¶m Om¶oJm VWm B§Q>aoñQ> AH$mC§Q>
                  accrued interest upto the date of purchase from  ^wJVmZ {H$¶o J¶o A§{V‘ ã¶mO H$s {XZm§H$ go H«$¶ H$s
                  the date of last interest paid. Bank account will  {XZm§H$ VH$ bJo ã¶mO go S>o{~Q> {H$¶m Om¶oJm& ~¢H$ AH$mC§Q>
                  be credited with the quotation price. On receipt
                  of first amount of interest on due date, the In-  H$mo H$moQ>oeZ ‘yë¶ go H«o${S>Q> {H$¶m Om¶oJm& {ZpíMV {XZm§H$
                  terest Account will be credited with the whole  na ã¶mO H$s nhbr am{e H$s àm[ßV na B§Q>aoñQ> AH$mC§Q>
                  amount of that period.                      H$mo Cg nr[a¶S> H$s g§nyU© am{e go H«o${S>Q> {H$¶m Om¶oJm&
                      For calculating cost and accrued interest,  bmJV VWm K{Q>V ã¶mO H$s JUZm H$aZo Ho$ {bE
                  the following steps should be followed:     {ZåZ{b{IV MaUm| H$m nmbZ H$aZm Mm{hE…
                  Step 1: Calculate the period between the date  MaU 1… ^wJVmZ {H$¶o J¶o A§{V‘ ã¶mO H$s {XZm§H$ VWm
                         of  last interest  paid and  the date  of    {g³¶mo[aQ>rO Ho$ H«$¶ H$s {XZm§H$ Ho$ ~rM H$s
                         purchase of securities.                      Ad{Y H$s JUZm H$aZm&
   266   267   268   269   270   271   272   273   274   275   276