A company is havng trading profit from sale of shares of rs.93 lakhs and investment profit from sale of shares Rs.2 crores. It is maintaining two types of profit protfolio i.e. trading and investment and shares at 31st march are shown as stock in trade (for trading) and closing stock (for investment). Now the company is buying shares of a company declaring bonus in the ratio 1:1. The original share price will fall approx 50% of its value on the ex-date. Suppose if the company wants to book losses it will sell the original shares at half price of the cost. So, in which portfolio shud the company purchase those shares and book losses, trading or investment and whther this type of loss booking is allowed?
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