On 1st April, 2025 Mr. Zoom had an opening balance of 1,000 equity shares of P Ltd.1,20,000 (face value 100 each). On 5.04.2025 he further purchased…

In the books of Mr. Zoom for the year ending on 31.3.2026 (Scrip: Equity Shares of P Limited) Date Particulars Qty Amount Date Particulars Qty Amount 1.4.2025 To Balance b/d 1000 1,20,000 8.04.2025 By Bank A/c (W.N.1) 3,400 5.04.2025 To Bank (200x 135) 200 27,000 10.10.2025 By Bank A/c (350x 140) 350 49,000 10.10.2025 To Profit & Loss A/c (W.N.2) 7,117 31.3.2026 By Balance c/d (W.N.3) 850 1,01,717 1200 1,54,117 1200 1,54,117 Working Notes: 1. Sale of Rights - 4,000 The market price of all shares of P Ltd after shares becoming ex-rights has been reduced by - 3,400. In this case out of sale proceeds of 4,000; ₹ 3,400 may be applied to reduce the carrying amount to the market value and 600would be credited to the profit and loss account. 2. Profit on sale of 350 shares Amount ₹ Sale price of 350 shares (350 shares X 140 each) 49,000 Less: Cost of 350 shares [(1,20,000+27,000-3,400) X350]/1200 41,883 Profit 7,117 3. Valuation of 850 shares as on 31.03.2026 Particulars Amount Cost price of 850 shares [(1,20,000 +27,000 -3,400) x 850 /1,200] 1,01,717 Fair Value as on 31.03.2020 [850 X 125 each] 1,06,250 Cost price or fair value whichever is less 1,01,717