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accounting entries of FUT shares transaction(Future trading)

A/c entries 2294 views 1 replies

Dear Member (who have FUT share transaction knowlege and its entry)

One of my client now started Future Shares Trading transaction (FUT Shares Trading). I received the bills from broker with two type of margin 1] Margin 2 Margin and    2] Other margin 

Now my queries are :
 
1] In my books how i'll pass the entry of purchase and sell and for  which amount?
 
     example : Date 12.11.2007 (Buy Transaction)
               buy XYZ 1000 qty @ 100.00  = Rs. 100000/-
               Day closing rate @ 99.00         = Rs.  99000/-
                                                                 ---------------
                  Margin 2 Margin                   = Rs.   1000/- (Net Dr)
                  Other Margin                        = Rs.  25000/- (Dr)
 
                 Date 13.11.2007 (no transactio)
                Op rate @ 98.00            = Rs. 98000/-
                  Cl rate @ 98.50            = Rs. 98500/-
                                                      --------------
                      Margin 2 Margin        = Rs.   500/- (Net Cr)
                       Other Margin            = Rs. 24500/- (Dr)

                  Date 14.11.07 (Sell Transection)
                  Op rate @ 97.00            = Rs. 97000/-
                 sell XYZ @ 97.40           = Rs. 97400/-
                                                         --------------
                       Margin 2 Margin        = Rs.   400/- (Net Cr)

 Kindly go through above three bills and let me guide how I'll book  the entry in books under which account head and at what amount. What  will be actual profit of XYZ script?
 
Regards
 Rajen Vora
 vora.rajen67 @ yahoo.co.in
 vora.rajen @ rediffmail.com

Replies (1)
refer to deirivatives accounting guidance note of 2003. year is not sure..kunjannareshshah @ yahoo.com


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