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BRILLIANT’S Investment Accounting 277

On 1st June, 2017 6% Government stock of ` 90,000 was sold @ ` 95 each cum-interest.

 6 2 
Total amount received ` 85,500 (` 95 × 900) which includes ` 900  ` 90,000   ac-
 100 12 
crued interest for 2 months April and May.
Therefore, net sale proceeds ` 85,000 – ` 900 = ` 84,600 will be credited to Investment Account
and ` 900 will be credited to Interest Account.
On 30th September, 2017 interest will be received on ` 2,10,000 (` 3,00,000 - ` 90,000) for 6
months.

6 6
Interest = ` 2,10,000   = ` 6,300
100 12
On 31st March, 2018, interest will be received on ` 2,10,000 for 6 months.

6 6
Interest = ` 2,10,000   = ` 6,300.
100 12
On 31st March, 2018, the stock of ` 2,10,000 will be valued @ ` 94 each (because cost is less
than market price of ` 96).
Therefore the value of stock will be ` 94 × 2,100 = ` 1,97,400.

(iv) Ex-interest/Dividend Sales (iv) E³g-B§Q>aoñQ>/{S>{dS>|S> goëg
When securities are sold ex-interest, quo- O~ {g³¶mo[aQ>rO H$mo E³g-B§Q>aoñQ> na ~oMm OmVm h¡
tation price excludes accrued interest. Invest- Vmo H$moQ>oeZ ‘yë¶ ‘| A{O©V ã¶mO gpå‘{bV Zht hmoVm h¡&
ment Account will be credited with the quota-
B§doñQ>‘|Q> AH$mC§Q> H$mo H$moQ>oeZ ‘yë¶ go H«o${S>Q> {H$¶m Om¶oJm
tion price and Interest Account will be cred-
ited with accrued interest. The Bank Account VWm B§Q>aoñQ> AH$mC§Q> H$mo A{O©V ã¶mO go H«o${S>Q> {H$¶m
will be debited with quotation price plus ac- Om¶oJm& ~¢H$ AH$mC§Q> H$mo {dH«$¶ H$s {XZm§H$ VH$ H$moQ>oeZ
crued interest upto the date of sale. ‘yë¶ YZ A{O©V ã¶mO go S>o{~Q> {H$¶m Om¶oJm&

Journal entries / OZ©b E§Q´>rO
1. When investment is sold ex-interest
O~ B§doñQ>‘|Q> H$mo E³g-B§Q>aoñQ> na ~oMm OmVm h¡&
Bank Account Dr. [Quotation price plus accrued
interest]
To Investment Account [Quotation price]
To Interest Account [Accrued interest]
2. At the end of the year, profit/loss on sale of investment
is transferred to Profit and Loss Account/Statement of
Profit and Loss / df© H$s g‘m{ßV na {Zdoe Ho$ {dH«$¶ na bm^/

hm{Z H$mo bm^ VWm hm{Z ImVo/bm^ VWm hm{Z Ho$ ñQ>oQ>‘|Q> H$mo
ñWmZm§V[aV {H$¶m OmVm h¡&