accounting for MF investment
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 June 2010
How to account for the purchase and sales / redemption of mutual funds units.
Further while calculating net profit, do we have account in FIFO basis or average method.
Further while calculating net profit, do we have account in FIFO basis or average method.
01 July 2010
debit mutual fund account on purchase
Credit mutal fund account on sale
if there is profit on redemption/ sale credit profit to profit on sale of mutual fund accoutn
if there loss debit the amount to the account
Credit mutal fund account on sale
if there is profit on redemption/ sale credit profit to profit on sale of mutual fund accoutn
if there loss debit the amount to the account
01 July 2010
follow fifo method for calcuating profit, required under income tax.
If you donot want to acount for income tax you have the choice as per your bussienss policy
If you donot want to acount for income tax you have the choice as per your bussienss policy
Querist : Anonymous
Querist :
Anonymous
(Querist)
01 July 2010
Thanks.
Referring to AS13 - Clause 22, which states that the profit to be recognised based on the average basis.
That means, we cannot follow the FIFO basis for company.
Is it true ?
Referring to AS13 - Clause 22, which states that the profit to be recognised based on the average basis.
That means, we cannot follow the FIFO basis for company.
Is it true ?
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