Dear Sir,
please suggest entry is correct or need to change.
share purchase entry.
Investment In share ( Investment) Dr.
Brokage (Capital account) Dr.
Service tax ( Capital account) Dr
Transcation Charges (Capital account)Dr.
STT ( Capital account) Dr.
State Bank - Cr.
Sale entry.
State Bank Dr.
Investment in shares - Cr.
investment in shares Dr.
Short term Capital gain Cr.( Capital
3 Replies
Eswar Reddy S
(CFO- at NHTF)
(58270 Points)
Replied 16 February 2022
If it is capital gain for you then investment should include all incidental expenses also .Add to cost of purchase
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 16 February 2022
Agree with Mr Reddy
Entries will be
Investment in Shares A/c Dr
To Bank A/c Cr
( Investment in shaers )
Include all expenses in Investment in shares A/c
Sales Entry
Bank A/c Dr
To Profit on Shares A/c Cr
To Investment in Shares A/c Cr
( sale of Investment )
As per AS 13 profit on sale of Investment will transfer to P&L , treated as short term capital gains for Income tax purpose , will be taxed @ 15% .
Entries will be
Investment in Shares A/c Dr
To Bank A/c Cr
( Investment in shaers )
Include all expenses in Investment in shares A/c
Sales Entry
Bank A/c Dr
To Profit on Shares A/c Cr
To Investment in Shares A/c Cr
( sale of Investment )
As per AS 13 profit on sale of Investment will transfer to P&L , treated as short term capital gains for Income tax purpose , will be taxed @ 15% .
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