Treatment in Investment(shares) Accounting

This query is : Resolved 

01 February 2009 If, when rights to purchase the shares are issued to existing share holders,
what should be the treatment if,
rights are sold to any other person---whether to be treated as income directly and credited to profit&loss a/c (or) to be credited to the cost of investments already existing..........????

02 February 2009 The sale proceeds are to be adjusted against the cost of this right entitlement which is the difference of cum-right price and the ex-right price. The surplus is the capital gain and any deficit will be the capital loss.



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