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Group and ledger

Naveen Kumar (729 Points)

27 March 2022

Dear sir

please provide the name of ledger and group Loss of during sale of Shares.

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6 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 27 March 2022

Create " Loss on sale of shares A/c" under exp

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Naveen Kumar (729 Points)
Replied 27 March 2022

SIR, it's under indirect exp?

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 27 March 2022

Yes .It is under Indirect Expense

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sabyasachi mukherjee (27334 Points)
Replied 27 March 2022

How do you treat it?
Let's come to the point.
1. LOSS ON SALE OF SHARES IF ITS charged to profit and loss account.
2. it may be short term Capital loss or long term Capital loss.

ALAMELU.N.N (student) (258 Points)
Replied 27 March 2022

You can put it as loss on sale of shares account under the heading indirect expenses in the profit and loss account.
Entry will be
Bank account Dr. ( sale amount)
To Investment in shares ( cost of shares sold)
To loss on shares account

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Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 28 March 2022

If you are doing business and sale proceeds credited to business bank account then you have to consider under PL .While doing IT Computation it has to be adjusted in Capital Gain

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