Subhan Trading Corporation through its intensive efforts for collection of its accounts receivables during the recent past period has some surplus funds in its working capital. The management wishes to generate some financial benefits from these availa

To address the requirements for recording the purchase of marketable securities and their subsequent market value increase for Subhan Trading Corporation, we will follow these steps:

### Step 1: Record the Purchase of Marketable Securities

#### 1. Purchase of Kohinoor Mills Ltd Shares:
- **Date of Purchase:** 28 September 2020
- **Number of Shares:** 1,500
- **Par Value per Share:** Rs. 100
- **Purchase Price per Share:** Rs. 250
- **Total Investment:** 1,500 shares * Rs. 250 = Rs. 375,000

**Journal Entry:**
```
Date                Account Titles                      Debit (Rs.)      Credit (Rs.)

28 Sep 2020      Investment in Marketable Securities                     375,000
                  Cash                                                 375,000
                  (Purchased 1,500 shares of Kohinoor Mills Ltd at Rs. 250 each)
```

#### 2. Purchase of Saif Group of Industries Ltd Shares:
- **Date of Purchase:** 15 March 2021
- **Number of Shares:** 2,000
- **Par Value per Share:** Rs. 50
- **Purchase Price per Share:** Rs. 85
- **Total Investment:** 2,000 shares * Rs. 85 = Rs. 170,000

**Journal Entry:**
```
Date                Account Titles                      Debit (Rs.)      Credit (Rs.)

15 Mar 2021      Investment in Marketable Securities                     170,000
                  Cash                                                 170,000
                  (Purchased 2,000 shares of Saif Group at Rs. 85 each)
```

### Step 2: Record the Increase in Market Price of Investment

After the purchase, we need to record the increase in market value as at 30 June 2021.

1. **Kohinoor Mills Ltd:**
   - **Market Value per Share as at 30 June 2021:** Rs. 300
   - **Total Market Value:** 1,500 shares * Rs. 300 = Rs. 450,000
   - **Increase in Market Value:** Rs. 450,000 - Rs. 375,000 = Rs. 75,000

**Journal Entry:**
```
Date                Account Titles                      Debit (Rs.)      Credit (Rs.)

30 Jun 2021      Investment in Marketable Securities                     75,000
                  Unrealized Gain on Investment                        75,000
                  (Increase in market value of Kohinoor Mills shares)
```

2. **Saif Group of Industries Ltd:**
   - **Market Value per Share as at 30 June 2021:** Rs. 100
   - **Total Market Value:** 2,000 shares * Rs. 100 = Rs. 200,000
   - **Increase in Market Value:** Rs. 200,000 - Rs. 170,000 = Rs. 30,000

**Journal Entry:**
```
Date                Account Titles                      Debit (Rs.)      Credit (Rs.)

30 Jun 2021      Investment in Marketable Securities                     30,000
                  Unrealized Gain on Investment                        30,000
                  (Increase in market value of Saif Group shares)
```

### Step 3: Present Marketable Securities in Financial Statements

According to the "mark to market" concept, the marketable securities should be presented at their fair market value.

#### Balance Sheet Presentation as at 30 June 2021:
1) **Kohinoor Mills Ltd Investments:**
   - **Cost:** Rs. 375,000
   - **Market Value:** Rs. 450,000

2) **Saif Group of Industries Ltd Investments:**
   - **Cost:** Rs. 170,000
   - **Market Value:** Rs. 200,000

**Total Marketable Securities:**
```
Kohinoor Mills Ltd Investments                       Rs. 450,000
Saif Group of Industries Ltd Investments              Rs. 200,000
--------------------------------------------------------------
Total Marketable Securities                           Rs. 650,000
```

**Note:** The unrealized gains will be reflected in the equity section of the balance sheet under "Other Comprehensive Income" if applicable or as part of retained earnings based on company's accounting policy.