Fno call option premium

Originally posted by : RAMESH PATEL
	call option premium paid by buyer is for the benefit or option to purchase the derivative at any price.so as per ind as 103 it is an asset for call buyer.the entry should bederivative asset Dr to bank

https://www.quora.com/Can-anyone-help-me-with-accounting-of-future-and-option

(i) Accounting at the inception of a contract: The seller/writer of the option is required to pay initial margin for entering into the option contract. Such initial margin paid would be debited to ‘Equity Index Option Margin Account’ or to ‘Equity Stock Option Margin Account’, as the case may be. In the balance sheet, such account should be shown separately under the head ‘Current Assets’. The buyer/holder of the option is not required to pay any margin. He is required to pay the premium. In his books, such premium would be debited to ‘Equity Index Option Premium Account’ or ‘Equity Stock Option Premium Account’, as the case may be. In the books of the seller/writer, such premium received should be credited to ‘Equity Index Option Premium Account’ or ‘Equity Stock Option Premium Account’ as the case may be.

If we follow the above notes the entries will be as follows

1. Capital brought into business

Bank Account Dr 100000

    To Capital Account Cr 100000

2. Transfering the amount to Demat Account

Axis Direct Account (Sundry Debtor) Dr 50000

   To Bank Account Cr 50000

3. Bought NIFTY 11000 CE @ 75*300 Expiry August 30 2018

Equity Index Premium Account/Derivative Asset Account Dr 22500

   To Axis Direct Account Cr 22500

4. Exercising/Closing the position for a margin NIFTY 11000 CE @ 75*360 Expiry August 30 2018

Axis Direct Account Dr 27000

   To Equity Index Premium Account

How the above practice will help me compute FNO turnover for the purpose of Income Tax?