Hello Friends, working in a co. where I am looking after personal accounts of the directors, where they transact in F&O, so I want to know what would be treatment or accounting entry for the same in view of income tax. please provide an example for more clarity.
7 Replies
Yasaswi Gomes new
(Finance )
(4524 Points)
Replied 26 November 2022
Yes. I also would like know the double entties. Please help me.
Yasaswi Gomes new
(Finance )
(4524 Points)
Replied 27 November 2022
That guy wanted to account for fand o and his CEO deals with then. So he was asking how to account for it. Jiutnal entries will help him
Bhavesh
(Accounts)
(158 Points)
Replied 27 November 2022
Hello Sabyasachi, I want to know the Accounting Treatment for the transactions that are conducted in F&O. As i know the accounting entry for the shares purchase i.e. cash segment, but for me F&O transactions are bit different, my director generally transact in Put and call options so want to know the accounting treatment with suitable eg. and also the impact in income tax. in case of share purchase we show the accounting entry as follows:
Share/Scrip A/c Dr.
STT A/c. Dr
Brokerage & Other Chgs. Dr.
to Broker A/c.
what accounting treatment would be for F&O transactions?.
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 27 November 2022
It depends on trading type.
Is it directly from bank account Debit/ credit or from ledger in brokerage house ?
Is it directly from bank account Debit/ credit or from ledger in brokerage house ?
Bhavesh
(Accounts)
(158 Points)
Replied 27 November 2022
Sir our directors generally deal as business type. I dint get your question?. We receive a ledger from brokerage house, but to show in books of accounts what entry has to be passed?.
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 28 November 2022
If funds are added from Bank account then you should account as
Brokerage house a/c Dr
To Bank
After investment
Investment A/c Dr
To Brokerage house
For F & O
---------------
1) On option buying/ writing
Call / Put A/c Dr
To Brokerage house
2) On Settlement or square off
Loss on Sale of F& o A/c Dr
Brokerage House A/c Dr
To Call/put
Brokerage house a/c Dr
To Bank
After investment
Investment A/c Dr
To Brokerage house
For F & O
---------------
1) On option buying/ writing
Call / Put A/c Dr
To Brokerage house
2) On Settlement or square off
Loss on Sale of F& o A/c Dr
Brokerage House A/c Dr
To Call/put
Recent Topics
- Doubt in ITR Filing
- DRC 03 for delayed RCM Payment
- Declaration about Legal Metrology Act
- Intermediary services under GST - SGST CGST IGST
- CSR thru implementing agency
- ETax payment of Revised return
- US based NRI Taxation on endowment plan taken in I
- Is it necessary to fill HSN code in GSTR 1, is the
- Pf advance withdrawal limit
- AOC4 & CFS,STANDALONE
Related Threads
Trending Online Classes
-
6 days Certification Course on GST Practical Return Filing Process
CA Pratibha Goyal16 December 2024
CAclubindia
