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On 1st April, 2017, XY & Co. Ltd. held 9% Debentures in B Ltd. of the face value of 10,000

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On 1st April, 2017, 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, 2017. Debentures of nominal value of ~ 6,000 were purchased for ₹5,000 ex-interest and on 31st December, 2017. Debentures of nominal value of ₹2,000 were sold cum-interest for ₹1,900. On 1st January, 2018 Debentures of nominal value of ₹6,000 were brought at ₹5,800. The market value of the Debentures on 31st March, 2018 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.

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Related Book For  answer-question
Financial Accounting Volume II

Financial Accounting Volume II

ISBN: 9789387886230

4th Edition

Authors: Mohamed Hanif, Amitabha Mukherjee

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Question Details
Chapter # 10- Investment Accounts
Section: Practical Question
Problem: 6
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Question Posted: August 25, 2023 03:20:06
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