Journal Entries for above transactions are as follows -
1/03/20 Share capital a/c
Dr. 150000
To bank
a/c
150000
(Being initial cash deposit paid for entering share selling
contract)
31/8/20 Bank
a/c
Dr.
1290000
To share capital a/c
1290000
( Being shares sold at market price)
As
on
30
jun
2020,
market
value
of
firm's
portfolio
of
shares
is
$1435000.
market
valu
e of share holding is $1500000
U
nit
price has fallen to 5300
Lower of both can be considered,
As per accounting principles
