Accounting Entry of F&O Transactions

Yes. I also would like know the double entties. Please help me. 

Pls explain what you want yo know?

That guy wanted to account for fand o and his CEO deals with then. So he was asking how to account for it. Jiutnal entries will help him 

Hello Sabyasachi, I want to know the Accounting Treatment for the transactions that are conducted in F&O. As i know the accounting entry for the shares purchase i.e. cash segment, but for me F&O transactions are bit different, my director generally transact in Put and call options so want to know the accounting treatment with suitable eg. and also the impact in income tax. in case of share purchase we show the accounting entry as follows:

Share/Scrip A/c Dr.

STT A/c. Dr

Brokerage & Other Chgs. Dr.

to Broker A/c.

what accounting treatment would be for F&O transactions?. 

 

  

It depends on trading type.

Is it directly from bank account Debit/ credit or from ledger in brokerage house ?

Sir our directors generally deal as business type. I dint get your question?. We receive a ledger from brokerage house, but to show in books of accounts what entry has to be passed?.

If funds are added from Bank account then you should account as

Brokerage house a/c Dr

To Bank

After investment

Investment A/c Dr
To Brokerage house

For F & O
---------------
1) On option buying/ writing
Call / Put A/c Dr
To Brokerage house

2) On Settlement or square off
Loss on Sale of F& o A/c Dr
Brokerage House A/c Dr

To Call/put

Can u please help how ot post entries using statements downloaded from demat website?