Method of account

This discussion addresses the correct accounting method for a Hindu Undivided Family (HUF) whose sole income source is share trading, with a turnover of approximately Rs. 1 crore. The current method uses the mercantile basis for purchases, sales, and expenses, with accounts duly audited. The consensus is that this mercantile basis is the correct procedure, especially given the speculative nature of day trading, which necessitates compulsory maintenance of books of accounts.