Shadman Enterprises Ltd is a trading company of industrial goods. The company has sufficient surplus funds available to invest outside the enterprise. Accordingly, the treasurer managed to purchase the following short and long term equity and debt secu

Let's break down each of the requirements step by step. We will create the appropriate journal entries for each part of the task.

### 1) Record the purchase of equity shares of each company.

For the purchase of ordinary shares:

**A) Purchase of shares of Reliance Manufacturing Company Ltd**
```
Date: 12 March 2020
Dr. Investment in Reliance Manufacturing Co. Ltd.       902,500
     Cr. Cash/Bank                                     902,500
(5000 shares at Rs. 180 + Rs. 5 agent commission = Rs. 185 per share)
```
Calculation:  
\[
5000 \text{ shares} \times (180 + 5) = 902,500
\]

**B) Purchase of shares of Beauty Cosmetics Industries Ltd**
```
Date: 08 April 2020
Dr. Investment in Beauty Cosmetics Industries Ltd      497,500
     Cr. Cash/Bank                                     497,500
(6,500 shares at Rs. 75 + Rs. 5 agent commission = Rs. 80 per share)
```
Calculation:  
\[
6,500 \text{ shares} \times (75 + 5) = 497,500
\]

### 2) Record the purchase of Bonds.

**C) Purchase of Bonds of United Commercial Bank**
```
Date: 01 May 2020
Dr. Investment in United Commercial Bank Bonds          1,000,000
     Cr. Cash/Bank                                     1,000,000
(1,000 bonds at Rs. 1,000 each)
```

### 3) Record the interest due on 30 June 2020 on Bonds.

Interest on the bonds is paid semi-annually. The total interest for 6 months:
```
Date: 30 June 2020
Dr. Interest Receivable                               75,000
     Cr. Interest Income                                75,000
(Interest = 1,000,000 * 15% / 2 = 75,000)
```

### 4) Record the increase or decrease in the market value of equity shares of each company.

**A)** For Reliance Manufacturing Company Ltd:
- **Cost per share:** Rs. 185
- **Market value per share on 30 June 2020:** Rs. 200  
- **Gain per share:** Rs. 15

```
Dr. Investment in Reliance Manufacturing Co. Ltd.     75,000
     Cr. Unrealized Gain on Investments                  75,000
(5000 shares * Rs. 15 gain per share)
```

**B)** For Beauty Cosmetics Industries Ltd:
- **Cost per share:** Rs. 80
- **Market value per share on 30 June 2020:** Rs. 70  
- **Loss per share:** Rs. 10

```
Dr. Unrealized Loss on Investments                     65,000
     Cr. Investment in Beauty Cosmetics Industries Ltd   65,000
(6,500 shares * Rs. 10 loss per share)
```

### 5) Present the marketable securities and the 15% Bonds in the balance sheet of the enterprise as at 30 June 2020.

**Marketable Securities:**
- **Investment in Reliance Manufacturing Co. Ltd:**  
  5000 shares x Rs. 200 = Rs. 1,000,000

- **Investment in Beauty Cosmetics Industries Ltd:**  
  6500 shares x Rs. 70 = Rs. 455,000

- **Total Marketable Securities:**  
  Rs. 1,000,000 (Reliance) + Rs. 455,000 (Beauty) = Rs. 1,455,000

**15% Bonds:**
- **Value:** Rs. 1,000,000

**Balance Sheet (Extract):**
```
Marketable Securities:
   Investment in Reliance Manufacturing Co. Ltd   1,000,000
   Investment in Beauty Cosmetics Industries Ltd     455,000
   Total Marketable Securities                      1,455,000
15% Bonds (United Commercial Bank)                 1,000,000
Total Marketable Securities and Bonds               2,455,000
```

### 6) Record the receipt of interest on Bonds after 6-month period.

```
Date: 01 Nov 2020
Dr. Cash/Bank                                       75,000
     Cr. Interest Receivable                        75,000
(Receipt of interest for the 6-month period)
```

### 7) Record the sale of equity securities during July 2020.

**Sale of Reliance Manufacturing Company Ltd shares:**
```
Date: 20 July 2020
Dr. Cash/Bank                                      380,000
     Cr. Investment in Reliance Manufacturing Co. Ltd  370,000
     Cr. Gain on Sale of Investment                   10,000
(2,000 shares sold at Rs. 190 = 2,000 * 190)
```
Calculation:  
Cash Received: 2,000 shares * 190 = Rs. 380,000  
Cost of Sold Shares: 2,000 shares * 185 = Rs. 370,000  
Gain = Rs. 380,000 - Rs. 370,000 = Rs. 10,000

**Sale of Beauty Cosmetics Industries Ltd shares:**
```
Date: 31 July 2020
Dr. Cash/Bank                                      120,000
     Cr. Investment in Beauty Cosmetics Industries Ltd 130,000
     Dr. Loss on Sale of Investment                    10,000
(2,000 shares sold at Rs. 60 = 2,000 * 60)
```
Calculation:  
Cash Received: 2,000 shares * 60 = Rs. 120,000  
Cost of Sold Shares: 2,000 shares * 80 = Rs. 160,000  
Loss = Rs. 120,000 - Rs. 160,000 = Rs. 40,000

By following this outline and entering these transactions into the accounting records, Shadman Enterprises Ltd will be able to accurately depict their investments, yields, and any gains or losses within the financial period.