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Turnover for share intraday trading

Accounting Entries 1058 views 2 replies

Hello,

Please provide the comments for following query:

I have made two intraday trades as follow and passed the following entry:

1.  Buy 1 unit @ Rs. 1000 and Sold it @ Rs. 1050.

Entry : Debit Broker;s A/c Rs. 50  & credit Gross Revenue A/c Rs. 50. (Here my turnover is Rs. 50/- as per Section 43(5)

2.  Buy 1 unit @ 500 and sold it for Rs. 450/-

Entry : Debit Gross Revenue A/c Rs. 50 & Credit Broker;s A/c Rs. 50 (Here also my turnover is Rs. 50/- as per Section 43(5)

Query : turnover should be Rs. 100/- but my Books of Account shows turnover as Nil. Is the above entries wrong ? if yes.. what will be the correct entries ???

Replies (2)

The aggregate of both positive and negative differences is to be considered as the turnover of such transactions.
.
[Refer Para 5.14(a) of the Guidance Note on Tax Audit (2014 Rev. Ed.) issued by the ICAI]

Thanks for reply..... but what about the journal Entry ???? it shows revenue A/c (turnover) as NIL. how to correct it ?????


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