meena yadav (90 Points)
28 October 2021
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3303 Points)
Replied 28 October 2021
Please for this link for your answers to your querry.
https://www.tnkpsc.com/Image/Accountingderivatives.pdf
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 28 October 2021
I read the American derivative futures in cfa, it’s easy, since your u don’t pay any money while entering into contract, no need to record anything. But for margins, I invented this technique, capitalise margins
Margin balance Asset a/c 1000
To bank a/c 1000
and during the long position, don’t do anything about losses and gains related to basis risk and similarly margin additional balance or loss. When you settle the contract, if you gain 1500, delivery of cash, then
Bank 1500
To Margin balance asset a/c 1000
To gain 500
how does this sound?
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 28 October 2021
By the way, its a narrative principle your asking. there are positions with hedge and without hedging, And there are different hedging techniques which are available in your books. As per the tax part,
A. Delivery based- it falls under Capital gains or PGBP
B. Inraday based- it falls under PGBP
C. Trading- Presumptive scheme of taxation and income tax slab rates applicable to income from business.
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