Below is the correct and simplest method to record purchase and sale of shares with Qty & Rate in Tally ERP 9 / Tally Prime.

This works whether you are accounting as an investor (capital gains) or as a trader (stock-in-trade).
I will give both methods so you can choose what applies to you.

✅ FIRST: Decide whether shares are “Inventory” or “Investment”

Tally allows quantity tracking for both, but accounting groups differ:

Most users who buy shares for investment should follow the Investment method.

I’ll explain both with steps.

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🅐 METHOD 1 — FOR INVESTORS (Most common)

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1️⃣ Enable Settings

• Gateway of Tally → F11 (Features)

• Enable “Maintain Accounts with Inventory”

• Enable “More than ONE Godown” (optional)

• Enable “Tracking of Inventory for Investments” (in some versions called Cost Tracking/Cost Category)

2️⃣ Create Ledger for INVESTMENT

Name: Investment in Shares
Group: Investments → Current Assets
Enable inventory values affected? ✔ Yes

(This allows you to enter Qty, Rate.)

3️⃣ Create Stock Item for Each Scrip

Gateway → Inventory Info → Stock Item → Create

• Name: XYZ Ltd.

• Units: Nos

• Group: Investments (or create a subgroup “Shares & Securities”)

4️⃣ Create Broker Ledger

Gateway → Accounts Info → Ledgers → Create

• Name: ABC Broker / Sharekhan / Zerodha

• Group: Sundry Creditors (if you get a contract note and pay later)
  OR Bank Accounts (if directly debited from bank)

✔ Do NOT put broker under expenses.
✔ It is a party from whom you buy shares → hence grouped as creditor.

5️⃣ Purchase Entry with Qty & Rate

Voucher → F9 – Purchase

• Party: Broker

• Stock Item: XYZ Ltd.

• Qty: 100

• Rate: 75

• Amount: 7,500

Add charges if any:

• Brokerage

• STT

• Transaction charges

• GST

• Stamp duty
  (These can be entered as separate ledgers under Indirect Expenses – Share Trading Charges.)

Total amount = Investment value.

6️⃣ Sale Entry

Voucher → F8 – Sales

• Party: Broker

• Stock Item: XYZ Ltd.

• Qty, Rate (e.g., 60 shares @ 90)

Profit/Loss does not appear in sales ledger; Tally computes gain/loss based on FIFO automatically if tracking is enabled.

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🅑 METHOD 2 — FOR TRADERS (STOCK-IN-TRADE)

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Use this only if you are doing share trading as business.

1️⃣ Create Stock Group

• Stock-in-Trade – Shares

2️⃣ Create Stock Item

• XYZ Ltd.

• Units: Nos

• Group: Stock-in-Trade – Shares

3️⃣ Create Ledger

• Share Trading Purchase → Group: Purchase → Yes, inventory affected

• Share Trading Sales → Group: Sales → Yes, inventory affected

• Broker Account → Sundry Creditors

4️⃣ Pass Purchase Entry (F9)

• Purchase Ledger: Share Trading Purchase

• Stock Item: XYZ

• Qty 100, Rate 75

• Charges added to purchase value.

5️⃣ Pass Sale Entry (F8)

• Ledger: Share Trading Sales

• Qty, rate

• Tally auto-adjusts inventory and computes trading profit.

📌 Where does the BROKER account go?

✔ Sundry Creditors (if you settle later)
✔ Bank (if amount debited instantly)

Brokers are not expenses; they are your counter-party for the contract note.

🎯 Summary (Quick Guide)