Question 7 On February 1, 2009, Future Ltd. entered into a contract with Son Ltd. to receive the fair value of 1000 Future Ltd.'s own equity shares outstanding as on 31-01-2010 in exchange for payment of 21,04,000 in cash i.e., 2104 per share. The contract will be settled in net cash on 31.01.2010 The fair value of this forward contract on the different dates were: 0 Fair value of forward on 01-02-2009 Nil () Fair value of forward on 31-12-2009 26,300 (ii) Fair value of forward on 31-01-2010 *2,000 Presuming that Future Lid. closes its books on 31st December each year, pass entries: If net is settled in cash If net is settled by Son Ltd. by delivering shares of Future Ltd. (8 Marks, November, 2010) Question 7 On February 1, 2009, Future Ltd. entered into a contract with Son Ltd. to receive the fair value of 1000 Future Ltd.'s own equity shares outstanding as on 31-01-2010 in exchange for payment of 21,04,000 in cash i.e., 2104 per share. The contract will be settled in net cash on 31.01.2010 The fair value of this forward contract on the different dates were: 0 Fair value of forward on 01-02-2009 Nil () Fair value of forward on 31-12-2009 26,300 (ii) Fair value of forward on 31-01-2010 *2,000 Presuming that Future Lid. closes its books on 31st December each year, pass entries: If net is settled in cash If net is settled by Son Ltd. by delivering shares of Future Ltd. (8 Marks, November, 2010)