Thanks a lot, I did find that the oscilloscope ground was causing trouble, it's a 2 channel DSO btw. I have run into a few further issues. I have completely removed ch1 for the time being and am focusing on current flowing through the 100 ohm resistor hence the voltage across ch2. Now after some scrutiny I am observing a rather strange phenomenon and am unable to figure out what is happening.when I power on the circuit and measuring ac voltage( ac current being passed through R) across the 100ohm resistor using a multimeter and a daq device there is no sign of any credible current flowing through 100 ohm resistor, but after connecting ch2 of the scope across 100 Ohms I see the ac current being passed on the scope and this time the multimeter and Daq also register this current flow. Sometimes even after dis connecting ch2 the multimeter shows the right ac current value but after is re start the circuit the same strange thing happens. Connecting the power supply's earth-ground to the dual supply ground helps and sometimes powering the circuit from a battery resolves this issue ,but not always. I sense there is something strange happening at the circuit ground but am unable to figure out what. Any help would be much appreciated. Thanks a lot.