Accounting for intra day transactions & F&o

This query is : Resolved

Harminder Singh (Querist)
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05 March 2010 My client deals in both type of trasactions intra day & F & O.He picks deliveries also of shares.Now i want to know how should i treat with deliveries?Are these should be entered as Purchase & Sales Or there is any other way to treat with these? Ialso want to know the treatment of intra day transactions, whether these be treated as Purchase & Sales or It should be entered in "Journal"?

CA Robin Betala

CA Robin Betala (Expert)
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05 March 2010 First one has to decide in case of share delivery transaction whether they are as investmentor or as trader .

As in your case is doing Intra day and F&o
it look he is trader , therefore all of such trading are business

And in these case you must show it as purchase and sale

For more refer to Guidance note of Securitisation and Derivative issued by ICAI

Bimal Thacker

Bimal Thacker (Expert)
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05 March 2010 In case of Intra day and F & O turn over is net Gain or loss and I will suggest that accounting should be done on that basis.