A/c entry of mutual fund

I hope so you sold your investment on 31/03/2013.

1) Mutual fund a/c 100000

to bank a/c                   100000

Same entry for next 2 years

2) Bank a/c Dr  450000

to Mutual fund a/c 300000

to Profit on mutual fund A/c 150000

Regarding exemption it depend upon whether it is debt fund or equity.

If it is Debt fund than it is taxable. if Equity than exepmt if it is held for more than 1 year.

what is a debt fund actually? Is it in anyway related to debenture issues?