On 1st April, 2016, XY & Co. Ltd. held 9% Debentures in B Ltd. of the face
Question:
On 1st April, 2016, XY & Co. Ltd. held 9% Debentures in B Ltd. of the face value of ₹ 10,000 at a cost of ₹ 8,000. Market value on that date was ₹ 9,000. Interest is payable on 31st December every year on 1st December, 2016. Debentures of nominal value of ₹ 6,000 were purchased for ₹ 5,000 ex-interest and on 31st December, 2016. Debentures of nominal value of ₹ 2,000 were sold cum-interest for ₹ 1,900. On 1st January, 2017 Debentures of nominal value of ₹ 6,000 were brought at ₹ 5,800. The market value of the Debentures on 31st March, 2017 was at ₹ 90. Make out 9% Debentures Account in the books of XY & Co. Ltd., showing profit and loss on sale of investment. Stocks on 31st March each year are valued at lower of cost or fair value.
Step by Step Answer:
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee