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For Scrip : Equity shares closing balance of 6000 shares the Cost arrived as a Balancing figure , but if tried to arrive cost under Average cost method the difference arises ? Someone pls explain the reason behind
Answers (13)
According to As-3,current investment are valued at cost or fair value which ever is lower. If Cost is lower then no loss will be arises. If fair value is low the difference should be transferred to profit and loss account ( Prudence Concept)
Thread Starter
Sundar RajanShall we find the Bal fig using Avg method ?
Yes, we can find Balance figure using Avg Method
Bharath Kumar Reddy Bandiatmakur
Yes, we can find Balance figure using Avg Method
If Avg method is used the Bal comes to Rs.53293
Thread Starter
Sundar RajanIf Avg method is used the Bal comes to Rs.53293
So the lower amt Rs.52350 taken , Is it right ?
Thread Starter
Sundar RajanIf Avg method is used the Bal comes to Rs.53293
Can you brief me how Rs 53293 has become balance figure
Bharath Kumar Reddy Bandiatmakur
Can you brief me how Rs 53293 has become balance figure
Total cost of 14000 shares = 126000-1650 =124350(A) (A)/14000*6000
Thread Starter
Sundar RajanTotal cost of 14000 shares = 126000-1650 =124350(A) (A)/14000*6000
Then what about the cost of investment of sold shares. You didn't minus it
Bharath Kumar Reddy Bandiatmakur
Then what about the cost of investment of sold shares. You didn't minus it
Total cost of 14000 shares =1,26,000. Cost per share = 9 Cost of shares sold =8000Ã?9 =72000 The cost of remaining shares = 126000-72000-1650 (cost of investment received in the form of dividend) =52350