Question
Vidya Ltd invested its idle cash into equity shares of X
Ltd by buying 1,000 shares at ₹120 per share and paying Brokerage and taxes amount ing to ₹10,000. At year-end, the fair market value of the investment was ₹1,05,000. As per AS 13, what amount should be shown as the value of current investment in the balance sheet of Vidya Ltd ?Solution
Explanation:
As per AS 13, current investments are carried at lower of cost and fair value .
- Cost = (1,000 × ₹120) + ₹10,000 = ₹1,30,000
- Fair value = ₹1,05,000
Hence, value in books = ₹1,05,000 -
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