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)

In TallyPrime, the setup depends on whether shares are held as investments or as stock-in-trade.

1. Shares held as investments

Create a separate ledger for each scrip under the Investments group and record purchases and sales through accounting vouchers.

Purchase example: Suppose 100 shares of XYZ Ltd. are purchased at ₹75 each, with ₹50 brokerage.

• Debit: Investment in XYZ Ltd. — ₹7,550

• Credit: Broker Payable — ₹7,550

The brokerage is included in the investment cost under AS 13, where applicable.

Sale example: Suppose all 100 shares are sold at ₹90 each, with no selling charges. Assuming the carrying cost is ₹7,550:

• Debit: Broker Receivable — ₹9,000

• Credit: Investment in XYZ Ltd. — ₹7,550

• Credit: Profit on Sale of Investments — ₹1,450

These entries exclude other charges and adjustments.

2. Tracking scrip-wise quantity and rate

For investments, maintain a register containing the scrip name, purchase date, quantity, purchase rate, sale details, and balance quantity. A standard accounting ledger records monetary values but does not, by itself, provide a complete quantity-wise investment register. For detailed tracking directly in Tally, a suitable customised report or add-on may be required.

3. Shares held as stock-in-trade

If shares are appropriately classified as stock-in-trade, you can create a separate Stock Item for each scrip.

In TallyPrime, go to Alt+G → Create Master → Stock Item. Set the unit to Nos. and enter the quantity and rate in the relevant purchase or sales voucher.

Example: 100 shares × ₹75 = ₹7,500.

Use this inventory method only when appropriate for the entity's accounting treatment, and ensure it does not duplicate the asset value in the books.

4. Broker ledger classification

For settlement tracking, you can create two separate ledgers:

• Broker Payable: Under Sundry Creditors (Current Liabilities), for amounts payable to the broker.

• Broker Receivable: Under Sundry Debtors (Current Assets), for amounts receivable from the broker.

When recording a purchase, credit Broker Payable. When recording a sale, debit Broker Receivable. Record the subsequent bank payment or receipt against the relevant ledger and reconcile both with the broker's contract notes and settlement statements.

Important: Do not recognise the same shares twice as assets. Follow the applicable accounting and valuation requirements for the classification of the shares.