Nominal value vs book value

Accountancy

In this November 2022 question on investment account, there is nominal value and book value. Can someone tell the difference between the two and what should we use for the calculation of the cost of investment.

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Prasad Ramasamy

CA Final

★ 4K+

27-Feb-23 10:46

1K+

Answers (3)

Best Answer

Book value is Net Assets / No of shares. However here the question uses the term book value as value recorded in the books.

CA Suraj Lakhotia

Admin

27-Feb-23 17:23

Nominal Value is Face Value of Shares And Book value means actual carrying value of shares in books.

Varun Mulay

CA Final

★ 39K+

27-Feb-23 11:25

Always show opening balances and transactions at Book Value and Calculate dividend on Nominal Value.

Varun Mulay

CA Final

★ 39K+

27-Feb-23 11:26