Accounting of Commodity trading

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HIREMATH A S (Querist)
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29 January 2011 Dear Sirs,

Daily we are trading steel trading NCDEX, for eg. steel rate is 28000 for 5% margin money we buying & selling for 29500.00. Brokerage & turnover charges are their. How we have to account these are all.

Any rules are their to account share / Commodity tradings.

A.S.Hiremath

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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29 January 2011 It is derivative , there is no intial investment in this case, You have have accounts profit or loss arising on these transaction in your books of accounts.