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Accounting of f & o transaction
Dear Sir/Madam,
I wants to know about accounting entry of F&O Transaction. Whether the accounting entry of F&O Transaction book on Mark to Market ( daily basis net entry- As per contract note daily issue by broker including net gain/loss of the day) ? If no then whether its entry require to pass on the date of open position & close position of F & O only by difference amount ?
Replies (2)
https://resource.cdn.icai.org/38253asb27888dc.pdf
Yes have to book the accounting enteries by mark to market basis.you will credit/debit the amount in bank account and the corresponding amount in equity derivative account.You will book profit or loss in P/L account at the time of squaring up as per ind as 32,107 and 109 .you can refer the guaidance note issued by ICAI on derivatives
https://resource.cdn.icai.org/38253asb27888dc.pdf
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