Capital gain on shares

Hello Dear,

First of all, get current share (Stock) holding of your client in his demat account. You can get it by asking demat statement of your client from his DP. Then account all his holding in his demat account as opening balance of investment. Get bills of all those investments and value investment accordingly. Now, you has to account all new purchase and sell of scrips. If transactions of share trading not reflected in client's bank statement, it means your client must maintain running account with his broker. Then debit all purchase investments and credit broker account. And credit all sale investments and debit broker account.

When you account purchase / sale transaction, view contract note / bill given by broker. At the end of note, there will be "due to us OR due to you" figure..Account that figure exectly in broker's account in our books.

At the end of period, our account balance with broker and brokers balance with us should be tally. There might be some difference because Trade charges / demat charges debited by broker or dividend credited by broker, that we had not accounted. Adjust all that entries and tally.