29 December 2013
Dear Experts, Please guide suppose any salaried person wants to make balance sheet with market value of units of Mutual Fund/Shares how to prepare ? E.G. Normally personal b/s are made at acquisition cost only but however if one is perfect and want to make such balancesheet then ? Suppose he has invested Rs.100000/- in MF on 01.04.2012 and its value is RS.118000/- as on 31.03.2013 similarly Rs.100000/- invested in Stocks and its closing price as of 31.03.2013 is 130000/- then how to show in balance sheet ? Please explain and show its entries.
29 December 2013
well the investments would be booked at cost. The difference in cost and current market value should be reflected as MTM gain or loss.
On liability side, create a reserve equivalent to the MTM gains.
CAclubindia
