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please correct answer On 1st April, 2019 Mr. Shyam had an opening balance of 1000 equity shares of X Ltd 31,20,000 (face value 3100 each).
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On 1st April, 2019 Mr. Shyam had an opening balance of 1000 equity shares of X Ltd 31,20,000 (face value 3100 each). On 5.04.2019 he further purchased 200 cum-right shares for 135 each. On 8.04.2019 the director of X Ltd announced right issue in the ratio of 1:6. Mr. Shyam waived off 100% of his entitlement of right issue in the favour of Mr. Rahul at the rate of 7 20 each. All the shares held by Shyam had been acquired on cum right basis and the total market price (ex-right) of all these shares after the declaration of rights got reduced by : 3,400. On 10.10.2019 Shyam sold 350 shares for 3 140 each. 31.03.2020 The market price of each share is 125 each. You are required to prepare the Investment account in the books of Mr. Shyam for the year ended 31.03.2020 assuming that the shares are being valued at average costStep by Step Solution
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