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Calcutta Investments hold 400 (12%) debentures of Rs. 100 each in Acma Ltd. as

on 1st April, 2004 at a cost of Rs. 50,000. Interest is payable on 30th June and 31st

December each year. On 1st June, 2004, 200 debentures are purchased cum-interest

at Rs. 21,400.

On 1st November, 2004 300 debentures are sold ex-interest at Rs. 28,650.

On 30th November, 2004, 200 Debentures are purchased ex-interest at Rs. 19,200.

On 31st December, 2004, 300 Debentures are sold cum-interest for Rs. 32,250.

Prepare Investment Account valuing closing stock as on 31st March, 2005 (applying

FIFO method) or market price whichever is lower. The debentures were quoted

at par on 31st March, 2005.

Answer rating: 100% (QA)

Investment Account for Calcutta Investments FIFO Method DateParticularsFace ValueRateInterestCostDeb... View the full answer