(a) Trade date accounting

Dr. Cr.
Purchase transaction --------- Rs. -------
28-09-11 Financial asset [20,000 x 24] 480,000
Payable 480,000

30-09-11 Financial asset [21,000 x 23.5 - 480,000] 13,500

P&L 13,500

30-09-11 Payable [480,000 - 20,000 x 23.50] 10,000

Exchange gain (P&L) 10,000

03-10-11 Financial asset [21,500 x 25 - 21,000 x 23.5] 44,000

P&L 44,000

03-10-11 Payable [20,000 x 23.50] 470,000

Exchange loss (P&L) 30,000
Cash [20,000 x 25] 500,000

Sale transaction
29-09-11 Receivable [35,000 x 23] 805,000
Loss on disposal 4,200
Financial asset 809,200

30-09-11 Receivable [35,000 x (23.5 - 23)] 17,500

Exchange gain (P&L) 17,500

04-10-11 Cash [35,000 x 26] 910,000

Receivable [35,000 x 23.5] 822,500
Exchange gain (P&L) 87,500

(b) Settlement date accounting

Dr. Cr.
Purchase transaction --------- Rs. -------
30-09-11 Receivable [(21,000 - 20,000) x 23.5] 23,500
P&L 23,500

04-10-11 Financial asset [21,500 x 25] 537,500

Receivable 23,500
P&L 14,000
Cash [20,000 x 25] 500,000

Sale transaction
29-09-11 P&L 4,200
Financial asset [809,200 - 35,000 x 23] 4,200

30-09-11 Financial asset [35,000 x (23.5 - 23)] 17,500

Exchange gain (P&L) 17,500

04-10-11 Cash [35,000 x 26] 910,000

Financial asset [809,200 - 4,200 + 17,500] 822,500
Exchange gain (P&L) 87,500