Question

11:01 PM A invested $100 in B in Y1. The market value of the investment at the end of Y1 was $120. What is the entry to be booked at the end of Y1 & when Investment is made? B invests $200 in C. Of this $200, $75 is made on behalf of A. What is the entry to be booked on A, B & Cs book?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solutions:

In Books of A:

1) Investment A/C Dr. $100

To Cash / Bank Cr. $100

(Being Investment made)

2) No Entry at Year end.( As Investment must be shown on cost or NRV whichever is lower)

In Books of B:

1) Cash A/c Dr. $100

To Securities Cr. $100

(Being cash received and securities issued)

2) Investment A/C Dr. $200

To Cash Cr. $200

(Being investment made in C)

In Books of C:

1) Cash A/c Dr. $200

To Securities Cr. $200

Add a comment
Know the answer?
Add Answer to:
11:01 PM A invested $100 in B in Y1. The market value of the investment at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT