PROBLEM 1

On 1st January, 2021 HP Ltd. purchased 1,000 15% Debentures of Reliance Ltd.
of ₹ 100 each @ ₹ 96 each. On 1st July, 2021, half of the Debentures were sold
at ₹ 99 each. Debenture interest is payable half-yearly on 30th June and 31st
December. You are required to show 15% Debentures in Reliance Ltd. Account
in the books of HP Ltd. assuming that the accounting year closes on 31st
December. Market price of a debenture as on 31st December is ₹ 98.

PROBLEM 2
On 31st March, 2021, X Ltd. purchased ₹ 2,00,000 6% Government Stock (face
value of ₹ 100 each) at ₹ 95 each cum-interest. Half-yearly interest is payable
on 30th June and 31st December every year.
Show entries in the investment ledger of X Ltd. for its financial year ended on
31st December, 2021, ignoring income tax and brokerage.

PROBLEM 3
On 31st March, 2021, X Ltd. purchased ₹ 2,00,000 6% Government Stock (face
value of ₹ 100 each) at ₹ 95 each ex-interest. Half-yearly interest is payable on
30th June and 31st December every year.
Show entries in the investment ledger of X Ltd. for its financial year ended on
31st December, 2021 ignoring income tax and brokerage.

PROBLEM 4
On 1st April, 2021 Janaki Ltd. had ₹ 3,00,000 6% Government Stock at ₹ 94
each (face value ₹ 100). Interest is payable half-yearly on 31st March and 30th
September. The company sold ₹ 90,000 of the stock at ₹ 95 cum-interest on 1st
June,2021. Draw up 6% Government Stock Account in the Investment Ledger of
the company for the year ended 31st March 2022. Ignore brokerage and income
tax. The stock was quoted at ₹ 96 ex-interest at the stock exchange on that date.
PROBLEM 5
On 1st April, 2020 Janaki Ltd. had current investment of ₹ 3,00,000 6%
Government stock at ₹ 94 (face value ₹ 100). Interest is payable half-yearly on
31st March and 30th September. The company sold ₹ 90,000 of the stock at ₹ 95
ex-interest on 1st June, 2020. Draw up 6% Government Stock Account in the
Investment Ledger of the company for the year ended 31st March, 2021. Ignore
brokerage and income tax. The stock was quoted at ₹ 96 ex-interest at the stock
exchange on that date.

PROBLEM 6
On 1st March, 2021, XY Corporation Ltd purchased ₹ 30,000, 5% Government
stock at ₹ 95 cum-interest. On 1st May, 2021 the company sold ₹ 10,000 of
stock at ₹ 97 cum-interest.
On 15th December, 2021, another ₹ 10,000 stock was sold at ₹ 93 ex-interest.
On 31st December, 2021, the closing date of the financial year, the fair value
of the stock was ₹ 92.
Half-yearly interest is received every year as on 30th June and 31st December.
Prepare a ledger account in the investment ledger assuming that the stock
transfer book is closed 20 days before the date of payment of interest.
Assume investments are current investments.

PROBLEM 7
Calcutta Investments holds 400, 12% debentures of ₹ 100 each in Acme Ltd., as
on April 1, 2020 at a cost of ₹ 50,000. Interest is payable on June 30 and
December 31 each year.
On June 1, 2020, 200 debentures are purchased cum-interest at ₹ 21,400.
On November 1, 2020, 300 debentures are sold ex-interest at ₹ 28,650.
On November 30, 2020, 200 debentures are purchased ex- interest at ₹ 19,200.
On December 31, 2020, 300 debentures are sold cum-interest for ₹ 32,250.
 Prepare the Investment Account on March 31, 2021.

PROBLEM 8
On April 1, 2021, Mr. Subramanium had 20,000 Equity Shares in X Ltd. Face
value of the shares was ₹ 10 each but their book value was ₹ 16 per share. On
June 1, 2021, Mr. Subramanium purchased 5,000 Equity Shares more in X Ltd. @
₹ 14 each. On September 1, 2021, X Ltd. declared 15% dividend for the year
2020-21. Mr. Subramanium received the same on September 20, 2021. Show
Investment Account upto September 20, 2021.

PROBLEM 9
On 1.4.2020, X Limited had 10,000 equity shares of ABC Limited (face value
being ₹ 10 each), purchased at par. The company paid brokerage at 1%. On
1.6.2020, the company purchased another lot of 5,000 shares at ₹ 12 each,
brokerage being 1%. On 15.8.2020, ABC Limited issued bonus shares at two
shares for every three held. On 1.1.2021, X Limited sold 10,000 shares at ₹ 11.
per share, brokerage being 1%.
Show Investment Account up to 1.1.2021.

PROBLEM 10

On 1.4.2017, X limited had 10,000 equity shares of ABC limited, purchased at

₹ 12 each (Face value being ₹ 10 per share). On 1.1.2018, ABC limited offered
two right shares for every five shares held at a premium of ₹ 3 per share. X
Limited however sold these rights entitlement in the market at ₹ 2 per shares. On
1.2.2018 immediately after the shares became ex-right, the market price of the
shares fell to ₹ 11.50 each. Show investment account up to 1.2.2018.