Sachkhand Enterprises (SE) buys the following option contract on Feb. 4, 2011 from Naam Enterprises (NE): (i)
Question:
Sachkhand Enterprises (SE) buys the following option contract on Feb. 4, 2011 from Naam Enterprises (NE):
(i) CA, RIL (300), April 2011, 1,050, @ ₹ 29.
(ii) PA, Tata Motor (500), April 2011, 1,250, @ ₹ 40.
He makes the payment of premium for both the option contracts. On March 31, 2011 at the time of annual closing the premium for these options was ₹ 60 and ₹ 12, respectively. Show how accounting entry will be executed in the books of accounts.
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Feb 4 2011 Feb 4 2011 Call option ac To Bank ac In the books of SE Dr purchase of call option CA RIL ...View the full answer
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