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ILLUSTRATION
During the year ended 31st December 2011, Ivory Investments Ltd.
purchased and sold investments as per details below:
31st March-Purchased 10,000, 5 per cent Debentures of 100 each of Asbestos Ltd. at 97,
brokerage and stamp duty amounting to 25,600. Interest is payable on the debentures on 1st July
and 1st January.
1st May-Purchased 10,000, 6 per cent Cumulative Preference Shares of 100 each of Andhra
Cements Ltd. at 95, brokerage and stamp duty being 24,200. Dividends are payable on 30th
June and 31st December.
1st July-Sold * 6,00,000 Debentures of Asbestos Ltd. at 99 per hundred, less brokerage, etc.
3,600.
1st October-Purchased a further 4,000, 6 per cent, Cumulative Preference Shares of 100 of
Andhra Cements Ltd. at 90, brokerage and stamp duty being 8,600.
Write up the Ledger Accounts of the two investments for the year 2011.
J
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