Hello,
I have a query about posting transactions involving sale of equity shares (BSE). My main business is consultancy, but I have invested in the share market, and show the investment under assets in my balance sheet.
Recently, I sold shares of two companies. For company X, my sale value was say Rs 100/-, where the buying value was Rs 90/-. Here, I can understand that I credit company X account by Rs 90/-, "Other Income" account by Rs 10/-, and debit bank account by Rs 100/-.
For company Y, my sale value was say Rs 100/-, where the buying value was Rs 110/-. Here I should credit company Y account by Rs 110/-, debit bank account by Rs 100/-, but credit which account by Rs 10/-? Should I create an account called "Loss in Shares" for this purpose? Further, should this account be created under the group "Indirect Expenses" and reduce my net profit to that extent? Or should I create this account under some other capital-account-group?
Looking forward to the guidance of the masters,
...
CAclubindia
