 We have to look into another question at the year end a limited year and is 31st March 2020 You know these year ends are reporting a period reporting day. So it can be 30th, June it can be 31st 30th September it can be 31st December. So they held 60,000 shares in a listed company Z A limited company has 60,000 shares available. These shares were purchased on February 11th at a price of 850 per share But there is a share of 10 rupees. If its price is 8.50 per share in the market then you will buy it at 8.50 per share The market value of the shares on 31st March was increased to 8.75 because it fluctuates daily. In fact, it fluctuates many times in the heart So there is no way that if you spend 10 rupees today in 8.50 per share then it will increase or you never know. It goes up and down The investment is categorized as held for trading. Again held for trading. You have bought it for trading Now show the entries required both the initial recognition of the investments and subsequent re-measurement on 31st March 2020 Initially when you have bought it then how many of them you have to record and end of the year Now you have not sold these shares to yourself. So how do you record them? When you have bought it then look at the entry. Held for trading investment. Clearly we have to tell that the investments we have shared. You can use the simple word investments. It is okay But clearly in this you have to tell that you have bought it for trading purpose so that you can sell it later on So as per the 60,000 share 8.50 per share you have debit the investment and credit the cash Now in the end of March its value is 8.75 per share. The increase of 25 paise you will debit the investments and credit the gain on investments If this would have been less then investments would have been credited and loss would have been debit. You got my point As much as the increase will happen then the investment will be debit and your gain will be credited But if it is less then you can also have loss and this happens normally So make sure that the gain is credited and if the gain is lost then debit the loss The gain should be represented in the income statement. Similarly if there is a loss that will be reported in the income statement as well Now the help for sale investment will be shown in statement of financial position at a fair value of 511,500 If you multiply 60,000 by 8.75 then this figure will come And if you add 1,500 in 510 then this will be 511,000 So the gain clearly that the change will come in your investments and the change will come through profit and loss account And in the financial position your figure will be the new figure in which you have adjusted the price Thank you very much