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Share Profit head and group

Naveen Kumar (729 Points)

05 March 2022

Sir,

please provide the name of account head and group ( profit of purchase sale shares)

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5 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 05 March 2022

Profit on Shares A/c , under Indirect Income , in Profit and Loss Account .

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Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 05 March 2022

If the purchase and sale of shares is taxable for you under capital gain then

Bank A/c Dr

To Investment (Cost)
To Capital Gain (Profit)

prasad Nilugal ( GST Practitioner & Accounts ) (14807 Points)
Replied 05 March 2022

As per AS13 Investment .
Any profit or loss on disposal of Investment to be transferred to profit and loss account .

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 05 March 2022

Yes. It's capital gain only .You may create a capital gain ledger under indirect income & adjust in IT Computation under capital gain .

If you create ledger either capital gain or profit on sale of shares under indirect income then it's transferred to P & L