Off market share transfer by father to son

Say , father transfer shares of TATA which was in his books for Rs. 50000/-.

The entry to be passed by father would be as under:

If gifted:

Gift

To TATA Shares

If sold:

Bank

To TATA Shares

The entry to be passed by son in his books as under:

If gift reveived

TATA Shares

To Gift

If purchased

TATA Shares

To Bank

if the shares are gifted by father to son then there will be no tax.

if the shares are transfered at a value then the diff will be taxable as Capital Gain in hands of father.

I think the first option is the right option.

Thanks you sir,

I have one more following query, regarding accounting treatment of Futures/Option Purchase/sale. 

1. What will be the accounting entry for purchase of future/option.

2. What happens when above entry squared off on there expiry date or squared off by trader before there expiry.

3. What entry to be made for Profit/loss of above transaction.

4. What to do at the time of finalisation of books, when I have some open position in above transactions.

5. what will be the effect of open interest in Balance Sheet. Need your cordial co-opration.

Thanking you.

Rahul Goyal |CFA