Page 296 - Corporate Finance PDF Final new link

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296 Corporate Finance BRILLIANT’S

9,26,000
4. Cost of bonds on 31.3.2017 will be: `  9,000 = ` 6,94,500
12,000
5. Profit on Sale of Shares:
` 40,00,000
Cost per share after bonus = = ` 16
2,50,000
Profit per share sold (` 20 - ` 16) = ` 4
Therefore, total profit on sale of 1,25,000 shares = ` 4 × 1,25,000 = ` 5,00,000. 

REVIEW QUESTIONS
Q.1. Write a short note on fixed and floating investment.
{’$³ñS> VWm âbmoqQ>J B§doñQ>‘|Q> na g§{já {Q>ßnUr {b{IE& [See Q.29]
Q.2. Discuss the main objectives of maintaining investment ledger.
B§doñQ>‘|Q> boOa ~ZmZo Ho$ ‘w»¶ CÔoí¶m| H$s ì¶m»¶m H$s{OE& [See Q.30]


PRACTICAL QUESTIONS

3.3.1 On 1.1.2016, 200, 6% debentures of ` 100 each of Y Ltd. were held as investments by X Ltd.
at a cost of ` 18,200. Interest is payable on December 31.
On 1.4.2016 : ` 4,000 of such debentures were purchased by X Ltd. @ ` 98 each cum-interest.
On 1.9.2016 : ` 6,000 debentures were sold at ` 96 ex-interest.
On 1.12.2016 : ` 8,000 debentures were sold @ ` 99 cum-interest.
On 31.12.2016 : X Ltd. sold ` 10,000 debentures @ ` 95 cum-interest.
Prepare the Investment Account for 6% debentures of Y Ltd. in the books of X Ltd. Ignore
income tax.
3.3.2 Jaipur Investment Ltd. hold 1,000 15% debentures of ` 100 each in Udaipur Industries Ltd.
as on April 1, 2016 at a cost of ` 1,05,000.
Interest is payable on June 30 and December 31 each year.
On May 1, 2016, 500 debentures are purchased cum-interest at ` 53,500.
On November 1, 2016, 600 debentures are sold ex-interest at ` 57,300.
On November 30, 2016, 400 debentures are purchased ex-interest at ` 38,400.
On December 31, 2016, 400 debentures are sold cum-interest for ` 55,000.
Prepare the Investment Account upto March 31, 2017.
3.3.3 On 1.4.2016, X Limited had 10,000 equity shares of ABC Limited (face value being ` 10
each), purchased at par. The company paid brokerage at 1%. On 1.6.2016, the company
purchased another lot of 5,000 shares at ` 12 each, brokerage being 1%. On 15.8.2016, ABC
Limited issued bonus shares at two shares for every three held. On 1.1.2017, X Limited
sold 10,000 shares at ` 11 per share, brokerage being 1%.
Show Investment Account up to 1.1.2017. 