Accounting entries for shares...

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kshitij (Querist)
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31 August 2008 please tell me the accounting entries for shares in the books of investor.i operate tally.so most preferably mechanical entries.i have the client statement of share trading and ledger provided by the broker . am finding it difficult to cope with the speculation trading. plz can anyone help me throughout the entries plz plz ?

kshitij

kshitij (Querist)
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31 August 2008 plz tell me the accounting entries for shares trading in the books of investor...?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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01 September 2008 All delivery based transactions may be booked under the heads of Purchase or Sales, if a business activity otherwise Investments. However, the profit or Loss from Jobbing being speculative may be booked under a separate head as 'Profit or Loss from Settlement of Contracts'. Dealing in F&O segment being non speculative in view of sec 43(5) may further be accounted for sepatately under the head of profit or Loss from Derivatives.

It is worth mentioning that the entries relating to Margins like MTM should be accounted for separately.

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