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BRILLIANT’S Investment Accounting 279

Interest Account will be credited with ` 900 and Investment Account will be credited with
` 85,500. The Bank Account will be debited with ` 86,400.
Profit on Sale of ` 90,000 Stock on 1.6.2017 `
Sales Proceeds 85,500

 ` 2,82,000 
Less: Average Cost   90,000  84,600
 3,00,000 
Profit on Sale 900
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.

Some Adjustments for Equity Shares B{³dQ>r eo¶g© B§doñQ>‘|Q> AH$mC§Q> Ho$ {bE Hw$N>
Investment Account g‘m¶moOZ

(a) Dividend Received (a) àmßV {S>{dS>|S>
When dividends on equity shares are de- O~ B{³dQ>r eo¶g© na {S>{dS>|S²>g H$mo àr-E{³d{OeZ
clared from pre-acquisition profits, it may be bm^ go Kmo{fV {H$¶m OmVm h¡ Vmo àr VWm nmoñQ> E{³d{OeZ
difficult to make an allocation between pre and bm^m| Ho$ ~rM Amd§Q>Z H$aZm H${R>Z hmo gH$Vm h¡& Eogr
post acquisition profits. In such a case, the cost
of investment is normally reduced by divi- pñW{V ‘| {Zdoe H$s bmJV gm‘mݶV… àmßV {S>{dS>|S²>g go
dends receivable only if they clearly represent KQ>m¶r OmVr h¡ ¶{X do bmJV Ho$ EH$ ^mJ H$s [aH$dar H$mo
a recovery of a part of the cost. ñnï> ê$n go àX{e©V H$aVr h¢&
Illustration 3.3.5
On April 1, 2016 Apsara Ltd. had 20,000 Equity Shares in X Ltd. Face value of the shares was
` 10 each but their book value was ` 16 per share. On June 1, 2016, Apsara Ltd. purchased 5,000
Equity Shares more in X Ltd. @ ` 14 each. On September 1, 2016, X Ltd. declared 15% dividend for
the year 2015-16. Apsara Ltd. received the same on September 20, 2016. Show Investment Ac-
count upto September 20, 2016.
1 Aà¡b 2016 H$mo Aßgam {b{‘Q>oS> Ho$ X {b{‘Q>oS> ‘| 20,000 B{³dQ>r eo¶g© Wo& eo¶g© H$s ’o$g d¡ë¶y < 10

à˶oH$ Wr, {H$ÝVw CZH$s ~wH$ d¡ë¶y < 16 à{V eo¶a Wr& 1 OyZ 2016 H$mo Aßgam {b{‘Q>oS> Zo < 14 à˶oH$ na X
{b{‘Q>oS> ‘| Am¡a 5,000 B{³dQ>r eo¶g© IarXo& 1 {gV§~a 2016 H$mo X {b{‘Q>oS> Zo df© 2015-16 Ho$ {bE 15%