Straight Bank of India invests in debt securities issues by the Government of India. Some of these investments are long­ term in nature and are expected to be ‘held till maturity’ whereas some of the investments are short­term in nature and are ‘held for trading’. The details of the investments as on 31st March 2018 are given below: 

1. At what value the investments should be shown in the Balance Sheet as on 31st March 2018? 

2. What will be the impact on the Profit & Loss Statement for the year ended 31st March 2018? 

3. What are the accounting principles involved?

Transcribed Image Text:

Nature of Investment Held Till Maturity Held for Trading Cost of Acquisition in Crore) ( 3200 2800 Current Market Price (in Crore) 3400 2600