Ledger head for profit on mg saLes

Suppose a mutual fund cost value 10000 is sold for rs15000 market value,so gains from mf redemption is 5000. My question is

What should be the ledger name for entering 5000 rs entry in tally?

Under which group/head is such ledger created in tally so that correct entry is passed.

I want to create a new ledger to record such profit/gains from sale of mg investment

Thanks in advance

Regards

Dr dilip khambete

 

Replies (12)
Quick Summary
This discussion focuses on creating the correct ledger entry in Tally for profits realised from selling mutual funds. The initial suggestion is to use 'Profit on Sale of MF' under the 'Indirect Income' group. However, confusion arises as some articles suggest using a 'Capital A/c' heading. The consensus leans towards 'Indirect Income' if the investment wasn't initially adjusted against capital, with the specific ledger name being 'Profit on Sale of MF'.

Bank A/c Dr

To Invest in MF
To Profit On Sale of MF ( Indirect Income)


So Ledger name can be " Profit on Sale of MF " under indirect income

Many thanks

Just a small query .....In many articles the heading is capital a/c for such ledger instead of ' indirect income'. So I got a bit confused, so if you can just elaborate if possible please

, many thanks once again

Regards

Dr dilip khambete

It depends on how the investment was accounted in the books at the time of purchase

iNDIRECT INCOME IS A CLASSIFICATION. I WOULD ADVISE USE INESTMENT HEAD+ NAME OF MUTUAL FUND

@ Filip Khambete ,

How did Account the investment on purchase?

Was it adjusted in capital?

No it was not.

 

Then you may go as per my first reply

I was advising just on creating a ledger in Tally. 

Ok ,,👍 thanks

will  do accordingly

Answer is already given with accounting entry

I have been filling itr4 every year for my clinic income.

This year I have redemption of Mutual funds with capital gains to me .So I will have to pay capital gain tax most likely. As per my observation there is no provision of recording income from mf gains  and also to calculate taxable mf gain. It is given in itr2 and itr 3.

Please guide me which itr should I fill this year.

Thanks

Regards

Dr dilip khambete

ITR-3 should be used since you have income from clinic also

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