Dear Sir,
please suggest below entry is correct or need to change.
share purchase entry.
Investment In share ( Investment) Rs.31000/- Dr.
State Bank 31000/- Cr.
Sale entry.
State Bank 39400/- Dr.
Investment in shares 39400/- Cr.
investment in shares 8400/- Dr.
Short term Capital gain 8400/- Cr.( Capital account)
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Share purchase Sale & profit entry
Replies (15)
Quick Summary
Its Correct..
If security transaction tax ( STT) paid , then same should be debited in the 1st entry and credied 2nd entry
Sir, could you suggest me how much income tax I need to paid
Short term capital gains will be taxed @ 15 %
Thanks Prasad Sir,
Not correct
So tell us correct entry in books
Entries are as follows
Purchase entry
Investment in Shares A/c Dr 31000/-
To State Bank A/c Cr 31000/-
( Investment in Shares )
Sales Entry
Bank. A/c Dr 39,400/-
To profit on Shares A/c Cr. 8400/-
To Investment in Shares A/C Cr 31000/-
( sale of Investment )
Profit on sale of Investment will be transferred to P&L . capital gain for the purpose of Income tax .
Purchase entry
Investment in Shares A/c Dr 31000/-
To State Bank A/c Cr 31000/-
( Investment in Shares )
Sales Entry
Bank. A/c Dr 39,400/-
To profit on Shares A/c Cr. 8400/-
To Investment in Shares A/C Cr 31000/-
( sale of Investment )
Profit on sale of Investment will be transferred to P&L . capital gain for the purpose of Income tax .
Dear Sir,
during purchased and sale of shares we have paid some expenses eg.Brokerage,stamp duty,service tax etc so in which group we charge the same.
during purchased and sale of shares we have paid some expenses eg.Brokerage,stamp duty,service tax etc so in which group we charge the same.
Those expenses to be included in the Cost of purchase of Investment .
Thank you for interesting post
What should be if the purchase was made in previous year & not recorded in books & the same was sold current year
What should be if the purchase was made in previous year & not recorded in books & the same was sold current year
What should be if the purchase was made in previous year & not recorded in books & the same was sold current year
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