What this entry is

A/c entries 880 views 1 replies

 This is done when ????

we make sale or purchase of investments?????

entry is:

By Investment A/c Dr(Eg:Indiabulls)

By Service Tax A/c Dr

By Security Transaction Tax A/c Dr

By Transaction Charges A/c Dr

            To Sundry Debtor A/c (Eg: Any Person)

Replies (1)

 

 

at the time of purchase of investment as investments are company's asset

and taxes paid are expenses......(only in cases where company is not engaged in purchase /sale of investments on regular basis i.e investment activities are not the part of ordinary business activities of the company).........

 

as the investment is purchased from a person (hereinafter referred as creditor) and taxes and other expenses are incurred by that person on behalf of the purchaser..........

 

in your presnt case you are giving credit to sundry debtor that reflects that any amount was receivable from him..(i.e. from seller ..)...and later on an investment aws purchased from him and taxes and other expenses are either paid by him or recovered from him(i,.e. from his dues)

 

example:

Mr A a debtor of company has an outsatnding balnce of Rs. 10,000 Dr. in the books of the comapny....

Comapny purchased an investment from Mr A (debtor) costing Rs. 4,000 and Service Tax 413 STT Rs. 100 & transaction charges are Rs. 15 are incurred.

All these taxes and expenses incurred on the transaction of purchase of investment are to be adjusted against dues recoverable from him...(not in full adjustment)..

 

then  entry in such case will be:

Investment A/c                Dr. Rs. 4,000

Service Tax A/c               Dr. Rs. 413

STT A/c                          Dr. Rs. 100

Transaction Charges A/c  Dr. Rs. 15

     To Mr A (Debtor) A/c                     Rs. 4528

(narration)

---------------------------------------------------------------------------------


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details