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On 15th June, 2018, Y limited wants to re-classify its investments in accordance with AS 13 (revised). Decide and state the amount of transfer, based
On 15th June, 2018, Y limited wants to re-classify its investments in accordance with AS 13 (revised). Decide and state the amount of transfer, based on the following information: (1) A portion of long term investments purchased on 1st March, 2017 are to be re-classified as current investments. The original cost of these investments was 14 lakhs but had been written down by 2 lakhs (to recognise 'other than temporary' decline in value). The market value of these investments on 15th June, 2018 was 11 lakhs. (2) Another portion of long term investments purchased on 15th January, 2017 are to be re- classified as current investments. The original cost of these investments was 7 lakhs but had been written down to 5 lakhs (to recognize 'other than temporary' decline in value). The fair value of these investments on 15th June, 2018 was 4.5 lakhs. (3) A portion of current investments purchased on 15th March, 2018 for *7 lakhs are to be re- classified as long term investments, as the company has decided to retain them. The market value of these investments on 31st March, 2018 was 6 lakhs and fair value on 15th June 2018 was 8.5 lakhs, (4) Another portion of current investments purchased on 7th December, 2017 for 4 lakhs are to be re-classified as long term investments. The market value of these investments was: on 31st March, 2018 on 15th June, 2018 3.5 lakhs 3.8 lakhs
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