Accounting of Speculative Transactions

This query is : Resolved

Shankar Rao (Querist)
Follow

20 January 2011 Dear all

Kindly let me know
How to account following transactions in Books of Accounts & Trading account

1)Intra day Transaction of 600 shares Purchase at Rs. 100 & sales at Rs. 105
2) Short sale of 500 shares at Rs.100 & buy back at Rs.105 ( loss booked)
3)F&O Purchase of 1000 shares at Rs.50

I will be thank full if you solve my problem

Thanking you
With regards

C.A.Javid Patel

C.A.Javid Patel (Expert)
Follow

25 January 2011 1. Intra Day Transaction

a. Script Account Dr.60,000
To Broker Account Dr. 60,000

b. Broker Account Dr. 63,000
To Script Account 63,000

c. Bank Account Dr. 3,000
To Broker Account 3,000

d. Script Acount Dr. 3,000
To Speculation Profit / Loss 3,000

2.F & O

F & O account 50000
To Broker Account 50000

3. Short Sale

Same as No. 1 i.e. in case of intra day transactions