QUESTION 45 The Investment portfolio of XYZ Ltd. as on 31.03.2020 consisted of the following: (Rs. in lacs) Current Investments Cost Fair Value as on 31.03.2020 (1) 1000 Equity Shares of A Ltd. 7 (2) 500 Equity Shares of B Ltd. 10 15 (3) 1000 Equity Shares of C Ltd. 15 12 Total 30 34 Give your comments on the following: (i) The company wants to value the above portfolio at Rs. 30 lakhs being lower of cost or fair market value. (ii) Company wants to transfer 1000 Equity Shares of C Ltd. from current investments to long term investments on 31.03.2020 at cost of Rs. 15 lakhs.

QUESTION 45 The Investment portfolio of XYZ Ltd. as on 31.03.2020 consisted of the following: (Rs. in lacs) Current Investments Cost Fair Value as on 31.03.2020 (1) 1000 Equity Shares of A Ltd. 7 (2) 500 Equity Shares of B Ltd. 10 15 (3) 1000 Equity Shares of C Ltd. 15 12 Total 30 34 Give your comments on the following: (i) The company wants to value the above portfolio at Rs. 30 lakhs being lower of cost or fair market value. (ii) Company wants to transfer 1000 Equity Shares of C Ltd. from current investments to long term investments on 31.03.2020 at cost of Rs. 15 lakhs.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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