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BRILLIANT’S Investment Accounting 285

Illustration 3.3.9

On 1st March, 2016 MMT Ltd.purchased ` 30,000, 5% Government stock at ` 95 cum-interest.
On 1st May, 2016 the company sold ` 10,000 of stock at ` 97 cum-interest.
On 15th December, 2016 another ` 10,000 stock was sold at ` 93 ex-interest.
On 31st December 2016, the closing date of the financial year, the fair value of the stock was
` 92.
Half-yearly interest is received every year as on 30th June and 31st December.
Prepare a ledger account in the investment ledger assuming that the stock transfer book is
closed 20 days before the date of payment of interest.
Assume investments are current investments.
1 ‘mM© 2016 H$mo MMT {b{‘Q>oS> Zo < 95 H$‘-B§Q>aoñQ> na < 30,000 5% JdZ©‘|Q> ñQ>m°H$ IarXm& 1 ‘B©
2016 H$mo H§$nZr Zo < 97 H$‘-B§Q>aoñQ> na < 10,000 H$m ñQ>m°H$ ~oMm&
15 {Xgå~a 2016 H$mo < 93 E³g-B§Q>aoñQ> na EH$ Aݶ < 10,000 ñQ>m°H$ ~oMm&
31 {Xgå~a 2016 H$mo ’$m¶Z|{e¶b B¶a H$s ³bmoqOJ {XZm§H$ na ñQ>m°H$ H$s ’o$¶a d¡ë¶y < 92 Wr&
AY© dm{f©H$ ã¶mO à{V df© 30 OyZ VWm 31 {Xgå~a H$mo àmá hmoVm h¡&
B§doñQ>‘|Q> boOa ‘| EH$ boOa AH$mC§Q> V¡¶ma H$s{OE ¶h ‘mZm J¶m {H$ ñQ>m°H$ Q´>m§g’$a ~wH$ ã¶mO Ho$ ^wJVmZ H$s {XZm§H$
Ho$ 20 {XZ nhbo ~§X hmo OmVr h¡&
‘mZm {Zdoe H$a§Q> B§doñQ>‘|Q²>g h¢&
Solution:
In the Books of MMT Ltd.
5% Government Stock Account
Dr. [Interest Payable: 30th June and 31st December] Cr.
Date Particulars Nominal Inte- Cost Date Particulars Nominal Inte- Cost
Value rest (`) Value rest (`)
1.3.16 To Bank A/c By Bank A/c
(WN 1) 30,000 250 28,250 1.5.16 (WN 2) 10,000 167 9,533
1.5.16 To State. of By Bank A/c
P&L (WN 2) - - 117 30.6.16 (Interest) - 500 -
31.12.16 To State. of By Bank A/c
P & L - 896 - 15.12.16 (WN 3) 10,000 229 9,300
By State. of
P & L (WN 5) - - 116
31.12.16 By Bank (Int.) - 250 -
31.12.16 By Statement
of P & L - - 218
31.12.16 By Bal. c/d
(WN 4) 10,000 - 9,200
30,000 1,146 28,367 30,000 1,146 28,367