Partridge Ltd Holds a Well-Diversified Portfolio of Shares with a Current

Partridge Ltd holds a well-diversified portfolio of shares with a current market value on 1 April 2014 of $1 million.On this date Partridge Ltd decides to hedge the portfolio by taking a sell position in 15 SPI futures units.The All Ordinaries SPI is 3130 on 1 April 2014.A unit contract in SPI futures is priced based on All Ordinaries SPI and a price of $25.The futures broker requires a deposit of $80 000.On 30 June the All Ordinaries SPI has fallen to 2980 and the value of the company's share portfolio has fallen to $950 000.On 1 July 2014 Partridge Ltd decides to sell its shares and close out its futures contract.At this date the portfolio has a market value of $925 000 and the All Ordinaries SPI is 2900.Assume all entries have been made mark to market on the futures contract and record changes in the deposit up to 1 July.What are the entries to record the transactions of 1 July 2014 (only) ?

A)
$$\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Cash } & 925000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & & 925000 \\\hline & & & \\\hline \text { Dr } & \text { Deposit held by broker } & 30000 & \\\hline \mathrm { Cr } & \text { Gain on futures contract } & & 30000 \\\hline & & & \\\hline \text { Dr } & \text { Cash at bank } & 166250 & \\\hline \mathrm { Cr } & \text { Deposit held by broker } & & 166250 \\\hline & & & \\\hline \text { Dr } & \text { Futures payable } & 1340000 & \\\hline \mathrm { Cr } & \text { Gain on futures contract } & & 166250 \\\hline \mathrm { Cr } & \text { Futures receivable } & & 1173750 \\\hline\end{array}$$
B)
$$\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Cash } & 925000 & \\\hline \text { Dr } & \text { Loss on share portfolio } & 75000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & & 1000000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Deposit on futures contract } & 30000 & \\\hline \mathrm { Cr } & \text { Gain on futures contract } & & 30000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Cash at bank } & 166250 & \\\hline \mathrm { Cr } & \text { Deposit on futures contract } & & 166250 \\\hline\end{array}$$
C)
$$\begin{array} { | c | l | r | r | } \hline \text { Dr } & \text { Cash } & 925000 & \\\hline \text { Dr } & \text { Loss on share portfolio } & 25000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & & 950000 \\\hline & & & \\\hline \text { Dr } & \text { Deposit held by broker } & 30000 & \\\hline \mathrm { Cr } & \text { Gains on futures contract } & & 30000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Cash at bank } & 166250 & \\\hline \mathrm { Cr } & \text { Deposit held by broker } & & 166250 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Cash } & 925000 & \\\hline \mathrm { Dr } & \text { Loss on share portfolio } & 75000 & \\\hline \mathrm { Cr } & \text { Share portfolio } & & 1000000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Deposit held by broker } & 30000 & \\\hline \mathrm { Cr } & \text { Cash at bank } & & 30000 \\\hline & & & \\\hline \mathrm { Dr } & \text { Futures payable } & 1340000 & \\\hline \mathrm { Cr } & \text { Deposit on futures contract } & & 166250 \\\hline \mathrm { Cr } & \text { Futures receivable } & & 1173750 \\\hline\end{array}$$