Mutual funds/shares stocks accounting
This query is : Resolved
Akash Unadkat
(Querist)
16 November 2014
If i buy Shares/ Mutual fund Units for Rs. 1000 on 01.04.2013,
Market Value of it on 31.03.2014 Rs. 1200,
I sell it on 30.04.2014 for Rs. 1250.
How can accounting be done ???
(1) Ans 1:
on 31.03.14
Income Receivable Dr. 200 [Current Assets]
Income Cr. 200 [P & L A/c.]
>> and Investment Shown in B/S at Cost on 31.03.14.
On 30.04.2014
Bank Dr. 1250
Investment Cr. 1000
Income Receivable Cr. 200
Income Cr. 50
(2) Ans 2: on 31.03.14
Investment Dr. 200 [Investments]
Income Cr. 200 [P & L A/c.]
>> and Investment Shown in B/S at Market Value on 31.03.14.
On 30.04.2014
Bank Dr. 1250
Investment Cr. 1200
Income Cr. 50
Correct Ans is any of Above, or Any Else ??
Please Suggest me.
- Akash Unadkat
Market Value of it on 31.03.2014 Rs. 1200,
I sell it on 30.04.2014 for Rs. 1250.
How can accounting be done ???
(1) Ans 1:
on 31.03.14
Income Receivable Dr. 200 [Current Assets]
Income Cr. 200 [P & L A/c.]
>> and Investment Shown in B/S at Cost on 31.03.14.
On 30.04.2014
Bank Dr. 1250
Investment Cr. 1000
Income Receivable Cr. 200
Income Cr. 50
(2) Ans 2: on 31.03.14
Investment Dr. 200 [Investments]
Income Cr. 200 [P & L A/c.]
>> and Investment Shown in B/S at Market Value on 31.03.14.
On 30.04.2014
Bank Dr. 1250
Investment Cr. 1200
Income Cr. 50
Correct Ans is any of Above, or Any Else ??
Please Suggest me.
- Akash Unadkat
Amol S Joglekar
(Expert)
18 November 2014
No need to account for the market value as on 31/03/2014. (Conservative principle.)
Pass the entry on 30/04/2014 itself.
.
.
The market value of the shares/mutual fund can be reported by way of foot note.
Pass the entry on 30/04/2014 itself.
.
.
The market value of the shares/mutual fund can be reported by way of foot note.
Akash Unadkat
(Querist)
23 November 2014
But if it would be for many years, like 5-10 then what ?? after 5-10 years, there will be much big figure of income, and pay higher tax.
where in actual its is collected amount for 5-10 years investment.
where in actual its is collected amount for 5-10 years investment.
Amol S Joglekar
(Expert)
23 November 2014
Shares : It will go to Long Term Capital Gain
(I think you are aiming at MARKET value method of accounting. It is NOT yet recomended in India)Your views please.
(I think you are aiming at MARKET value method of accounting. It is NOT yet recomended in India)Your views please.
Rupesh Jain
(Expert)
26 November 2014
you have to book income when you sell the stock , if you remain 5-10 year then its taxable under long term capital gain.
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