Homework Answers
ANSWER:
1)
|
Date |
General Journal |
Debit |
Credit |
|
31-12-2018 |
Trading Investment -A A /C |
2700 |
|
|
Unrealised Gain Or loss on Trading Investment A/C |
2700 |
||
|
(Investment adjusted to fair value Gain) |
|||
|
31-12-2018 |
Trading Investment -B A/C |
1300 |
|
|
Unrealised Gain Or loss on Trading Investment A/C |
1300 |
||
|
(Investment adjusted to fair value gain) |
|||
|
31-12-2018 |
Unrealised Gain Or loss on Trading Investment A/C |
1800 |
|
|
Trading Investment -C A/C |
1800 |
||
|
(Investment adjusted to fair value loss) |
NOTE:
| COST | FAIR VALUE | DIFFERENCE | GAIN / LOSS |
| 19100 | 21800 | 2700 | GAIN |
| 12800 | 14100 | 1300 | GAIN |
| 21900 | 20100 | -1800 | LOSS |
2)
In balance sheet, the INVESTMENT HELD FOR SALE comes under CURRENT ASSETS as SHORT TERM INVESTMENTS and this should be recorded as per the latest available fair value. And the fair value adjustments will go to the account UNREALISED GAIN AND LOSSES,
In income statement, on an income statement, trading securities are recorded at the time of sale. Any gains or losses realized as a result of the securities in question are to be attributed to operating income as a new line item titles “Gain (Loss) on Sale of Trading Securities.”
3)
|
Date |
Generel Journal |
Debit |
Credit |
|
22-03-2019 |
Bank A/C |
22700 |
|
|
Gain on Sale of Trading Investment |
900 |
||
|
Trading Investment -A A /C |
21800 |
||
|
(Gain on sale of Trading investment -A) |
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Prepare the journal entries for Blue...
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