Broker balance mismatch while accounting of shares

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Quick Summary

A client sold shares in FY 2020-21 and received the proceeds in a separate trading wallet, like Paytm, rather than their bank account. This has caused a mismatch with their broker's account. The recommended solution is to treat the 'wallet account' similarly to a bank account, debiting the wallet and crediting the broker for the sale proceeds.

DIVYESH JAIN

DIVYESH JAIN (Querist)

26 November 2021 Dear Sir,

One of my client deals in share trading in which he has a share trading account with a broker.

He has sold shares in FY 2020-21 for which he received the money in his wallet like paytm which he keeps separately for trading purpose

My question is where should I show this entry of Sale proceeds as the sale amount is not received into his bank account leading to mismatch in his broker's account.

Regards,
Divyesh Jain

Manish

Manish (Expert)

26 November 2021 You need to maintain the 'wallet account' like you are keeping the bank account.

Wallet A/c Dr.
To Broker A/c
(Sale proceeds received)

DIVYESH JAIN

DIVYESH JAIN (Querist)

26 November 2021 Ok, Thanks for your reply

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