This document discusses accounting for investments according to Accounting Standard 13. It defines investments as assets held to earn income through dividends, interest or rentals. Investments can be classified as long term or current based on holding period, and as variable or fixed earning securities based on nature. Dividend earning securities are recorded at full purchase price including dividends. Dividends received before and after acquisition date are treated differently for accounting purposes. Bonus shares are recorded by increasing share quantity without affecting cost. Rights shares are similarly recorded, and sale of rights is credited to profit and loss.

2. Security

4. Transfer the balance on debenture account to newly opened share account.

6. Face value in N.V. column.

7. Cost in capital column.

8. Purchase of shares;

9. Record N.V. in N.V. column.

10. Record cost in capital column.

11. Bonus shares:

12. Record N.V. in N.V. column.

13. Do not enter anything in cost column.

14. Rights shares:

15. Record N.V. in N.V. column.

16. Record cost in capital column.

17. Dividend received:

18. Record pre-acquisition dividend in capital column.

19. Record post-acquisition dividend in dividend column.

20. Sale of shares:

21. Record N.V. in N.V. column.

22. Record amount received in capital column.

23. Loss on sale:

24. Record loss on sale in capital column on Credit side.

25. Profit on sale;

26. Record profit on sale in capital column on Debit side.

27. Balance;

28. Record closing balance, N.V. in N.V. column and cost in capital column.

29. Loss on valuation:

30. Record loss on valuation of shares in hand in capital column on Credit side.

31. Balance on dividend account:

32. Transfer balance on dividend account to Profit And Loss Account on Debit side of Investment Account.