Kushal (Student) (225 Points)
04 May 2009One of our client who passed away....had lots of share investments
so shares from his demat a/c were transferred to another persons demat accounts ...
So what are the accounting entries to be passed in both the books ???
Pls reply urgently
Rupesh Jha
(M.Com CA PhD* and MBA*)
(1116 Points)
Replied 05 May 2009
IN 1ST PARTY'S BOOK :-
ABNORMAL LOSS A/C...........DR
TO INVESTMENT IN SHARES A/C
IN 2ND PARTY'S BOOK :-
SHARE IN INVESTMENT A/C..........DR
TO ABNORMAL GAIN A/C
CA P KARTHIKA
(Chartered Accountant)
(715 Points)
Replied 06 May 2009
Ya as per Rupesh with relevant computations of loss/gain in transfer of shares can be accounted if the transferee is acquiring at differential rates per share subject to the market rates of those shares... Provided in both the parties a/c transfer of shares should be passed...
Hope so!
Just anybody let me know whether Iam exact or not?????
ankit singhal
(student)
(123 Points)
Replied 06 May 2009
yes karthika you are right loss/gain should debit or credit as per market rates of shares
CAclubindia
