Accouting of Client money in online broking house

1. Bank Ac  Dr

           To Client deposit account

(Being client deposited the money on his account)

2. Equity shares investment account Dr

            To bank / to stock exchange control account

(being shares purchased from stock exchange on behalf of client)

3. Client deposit account  Dr

                  To Equity share investment account

       (Being shares transferred to client’s demat account)

4. Client deposit account  Dr

             To brokerage account (credited to p&l)

             To security transaction tax payable account (Liability)

  (Being brokerage and security transation tax payable transferred)

Thanks Kingsley,

I have a related question

Would you know, if the brokers maintain a trust or an escrow account with the banks for the client's deposit with them ??

I guess they should. Only from that account, they will buy shares i guess.