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274 Corporate Finance BRILLIANT’S

(ii) Ex-Interest/Dividend Purchases (ii) E³g-B§Q>aoñQ>/{S>{dS>|S> nM}gog
When securities are purchased on 'ex-in- O~ {g³¶mo[aQ>rO H$mo 'E³g-B§Q>aoñQ>' na IarXm
terest', the quotation price consists of no ac- OmVm h¡ Vmo H$moQ>oeZ ‘yë¶ ‘| H$moB© A{O©V ã¶mO gpå‘{bV
crued interest. The seller will get quotation Zht hmoVm h¡& {dH«o$Vm H$moQ>oeZ ‘yë¶ YZ A{O©V ã¶mO àmá
price plus accrued interest. The Investment
Account will be debited with quotation price H$aVm h¡& B§doñQ>‘|Q> AH$mC§Q> H$mo H$moQ>oeZ ‘yë¶ YZ ~«moH$aoO
plus brokerage (if any). Interest Account will go S>o{~Q> {H$¶m Om¶oJm (¶{X H$moB© h¡)& B§Q>aoñQ> AH$mC§Q>
be debited with accrued interest. Bank Account H$mo A{O©V ã¶mO go S>o{~Q> {H$¶m Om¶oJm& ~¢H$ AH$mC§Q>
will be credited with quotation price plus ac- H$mo H$moQ>oeZ ‘yë¶ YZ A{O©V ã¶mO go H«o${S>Q> {H$¶m
crued interest. On receipt of the first amount of Om¶oJm& ã¶mO H$s nhbr am{e H$s àm{ßV na B§Q>aoñQ>
interest, the Interest Account will be credited
with whole amount of that period. Accrued AH$mC§Q> H$mo Cg nr[a¶S> H$s nyar am{e go H«o${S>Q> {H$¶m
interest will be calculated just like in the pre- Om¶oJm& A{O©V ã¶mO R>rH$ {nN>br {d{Y Ho$ g‘mZ hr
vious method. JUZm {H$¶m Om¶oJm&
Journal Entries / OZ©b E§Q´>rO
1. When investment is purchased ex-interest
O~ B§doñQ>‘|Q> H$mo E³g-B§Q>aoñQ> ‘| IarXVo h¢&
Investment Account Dr. [Quotation Price]
Interest Account Dr. [Accrued interest]
To Bank Account [Quotation Price plus accrued
interest]
2. When first interest is received on due date after pur-
chase
O~ H«$¶ Ho$ níMmV² {ZpíMV {XZm§H$ na nhbm ã¶mO àmá {H$¶m
OmVm h¡&
Bank Account Dr.
To Interest Account [Whole interest of that period]

Illustration 3.3.2
On 31st March, 2018 Brothers Ltd. purchased ` 2,00,000 6% Government Stock (face value of
` 100 each) at ` 95 each ex-interest. Half-yearly interest is payable on 30th June and 31st Decem-
ber every year.
Show entries in the investment ledger of Brothers Ltd. for its financial year ended on
31st December, 2018 ignoring income tax and brokerage.
31 ‘mM© 2018 H$mo ~«Xg© {b{‘Q>oS> Zo < 95 ‘| E³g-B§Q>aoñQ> na < 2,00,000 6% JdZ©‘|Q> ñQ>m°H$ (< 100
à˶oH$ H$s ’o$g d¡ë¶y) na H«$¶ {H$¶m& AY©dm{f©H$ ã¶mO à{V df© 30 OyZ VWm 31 {Xg§~a H$mo ^wJVmZ {H$¶m OmVm h¡&
31 {Xg§~a 2018 H$mo g‘má hþE BgHo$ ’$m¶Z|{e¶b B¶a Ho$ {bE ~«Xg© {b{‘Q>oS> Ho$ B§doñQ>‘|Q> boOa ‘| E§Q´>rO
Xem©B¶o, B§H$‘ Q>¡³g VWm ~«moH$aoO H$s AdhobZm H$s{OE&