Can anyone solve this ques on as 30

CA Sahil Singla.. (Service Tax ) (3746 Points)

10 August 2011  


Plz refer Question No 5(b) given on page 13 of attached file relating to AS 30

My doubt is on part(ii) of question in case when contract is net settled by physical delivery. In this case,why then entry is of Rs. 2000

Instead it should be     Equity .....106000

                                         To Cash................2000

                                         To Valuation Resrve....104000

bcoz fair value of asset is 106000 only & not 2000(wich is the fair value of Forward Contact)