Tally related query!

Share is not a stock it is an investment and it should be revalued at the time of sale.

well, if one is doing business in shares, then its treated as stock, not as investment.

SIR, WITH DUE RESPECTS

i am not pretty sure if any person with out a valid right  can carry on trading in shares.

apart from that...SINCE THERE IS NO SALE IN THE CURRENT YEAR THEY BEING LONG TERM,

this is what as per AS-13

Long-term investments are usually carried at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognise the decline.

the resultant reduction in the carrying amount is charged to the profit and loss statement. The reduction in carrying amount is reversed when there is a rise in the value of the investment, or if the reasons for the reduction no longer exist.

I want to clarify few things here. When I mentioned " this is the first year I am closing my accounts in tally", I meant the financial year 2010-11.

And when I mentioned "since no sale or purchase is happenning here", I meant that the transaction of revaluing the shares doesnt include any purchase or sale. It doesnt mean that no sale or purchase has happenned in the year 2010-11. 

@ Anivash......As per my knowledge there is no prohibition for trading in shares. If there is any, please refer to the relevant provision/notification/circular of any act.

Sourav

As per your clarification, you are holding some shares and as per AS-13, you want to revalue them as current investment and wish to know how to pass the transaction in Tally

So, same as per AS 13, revaluation of current investment should be done thgrough profit and Loss Account, So create on account Namely " Revaluation of Shares" with revenue nature and pass the entry as usual

For Upward Revaluation

          Investment in SharesA/c  Dr

              To Revaluation of Shares A/c 

Reverse for Downward Revaluation

For Tax implication on this refer IT Act

As far as my knowledge is concerned, its a capital receipt or loss and has no tax implications

Tax arises only  when you transfer the shares and compute value taxable as diff between aquisition cost and Sale value

Ignore this comment if my perception of your clarification is wrong

@ prakash......yes, you misinterpreted my clarification.........AS-13 doesnt come into picture at all since I am treating shares as stock and further its not accounting based query, its tally-specific query. Generally we revalue anything by just passing an entry but here in Tally since closing stock is valued on the basis of individual share values, we cant make any closing stock entries. To make any change in the value of closing stock, we have to route it through individual shares only. So, my query is ' without affecting the number of shares, how can one change the rate of such shares?'

Sourav

Can we not update the share value in Tally.

Simple :

Lets say your standing in shares is

ABC Ltd   100 scrips @ Rs,100 = 10000

Value of share on 31st March 2011 is Rs.105

Now For the Incremental of Rs.5 you want to adjust in Tally ERP 9 !! right ?

Show the Incremental price separately with respective quantity as on that date. i.e ABC Ltd  100scrips at Rs5

Thnx a lot Robin for atleast understanding my query!

Now coming to the solution, can you throw some light on how to show that incremental price separately. I mean if you go on to make an entry for that incremental price, the number of scrips will add up to 200. So I am not getting how to show that separately. Please tell us if such type of feature is there in tally.

Sourav

Please vist on below link for all query related to Tally .

https://tallyssolution.blogspot.com/2011/09/compute-tax-liability-for-fy-2010-11-ay.html