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Share purchase Sale & profit entry

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Pivate
1491 Points Posted on 05 February 2022

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)

2 Reply Share Follow
On 05 February 2022 at 22:00 Report
Replies (15)
Quick Summary
Share purchase is recorded as investment and sale as bank inflow with profit credited to capital gain account. Brokerage and related expenses are added to cost. Short term capital gain is taxable generally at 15 percent.

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SEO Sai Gr. Hosp.
211560 Points Posted on 06 February 2022

Its Correct..                    

581 Reply
On 06 February 2022 at 11:00
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GST Practitioner & Accounts
15083 Points Posted on 06 February 2022
If security transaction tax ( STT) paid , then same should be debited in the 1st entry and credied 2nd entry
24 Reply
On 06 February 2022 at 11:25
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Pivate
1491 Points Posted on 06 February 2022
Sir, could you suggest me how much income tax I need to paid
2 Reply
On 06 February 2022 at 11:29
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GST Practitioner & Accounts
15083 Points Posted on 06 February 2022
Short term capital gains will be taxed @ 15 %
24 Reply
On 06 February 2022 at 11:46
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Pivate
1491 Points Posted on 06 February 2022
Thanks Prasad Sir,
2 Reply
On 06 February 2022 at 11:54
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Profession Business
28196 Points Posted on 06 February 2022
Not correct
44 Reply
On 06 February 2022 at 15:57
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Pivate
1491 Points Posted on 06 February 2022
So tell us correct entry in books
2 Reply
On 06 February 2022 at 17:41
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GST Practitioner & Accounts
15083 Points Posted on 17 February 2022
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 .
24 Reply
On 17 February 2022 at 11:28
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Pivate
1491 Points Posted on 17 February 2022
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.
2 Reply
On 17 February 2022 at 18:37
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GST Practitioner & Accounts
15083 Points Posted on 17 February 2022
Those expenses to be included in the Cost of purchase of Investment .
24 Reply
On 17 February 2022 at 21:13
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Writing
32 Points Posted on 18 February 2022

Thank you for interesting post

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On 18 February 2022 at 19:21
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6 Points Posted on 11 February 2025

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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On 11 February 2025 at 20:55
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6 Points Posted on 11 February 2025

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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On 11 February 2025 at 20:55
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6 Points Posted on 11 February 2025

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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On 11 February 2025 at 20:55


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