Notes to Financial Statements
1. Significant Accounting Policies Ellsworth Convertible Growth and Income Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a diversified, closed-end management investment company. The
preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial statements:
(a) Security Valuation Investments in securities traded on a national securities exchange are valued at market
using the last reported sales price as of the close of regular trading. Securities traded in the over-the-counter
market and listed securities for which no sales were reported are valued at the mean between reported bid and
asked prices as of the close of regular trading. Where no closing prices are available, value is determined by
management, with the approval of the Board of Directors.
(b) Securities Transactions and Related Investment Income Security transactions are accounted for on the trade
date (date the order to buy or sell is executed) with gain or loss on the sale of securities being determined based
upon identified cost. Dividend income is recorded on the ex-dividend date and interest income is recorded on the
accrual basis. For certain securities, Federal tax regulations require the Fund to record non-cash, "contingent"
interest income in addition to interest income actually received. Contingent interest income amounted to 5 cents
per share for the six months ended March 31, 2001.
(c) Federal Income Taxes It is the policy of the Fund to distribute substantially all of its taxable income within the