Dear Sir/Madam
I am working professional. Few days back I have come across a problem regarding accounting treatment of Futures/Option Purchase/sale.
1. What will be the accounting entry for purchase of future/option.
2. What happens when above entry squared off on there expiry date or squared off by trader before there expiry.
3. What entry to be made for Profit/loss of above transaction.
4. What to do at the time of finalisation of books, when I have some open position in above transactions.
5. what will be the effect of open interest in Balance Sheet.
Need your cordial co-opration.
Thanking you.
Rahul Goyal
CFA
CAclubindia
