Accounting for Shares in Tally

[adityasaraf007]

I wanted to know if there is a way we can pass the accounting entries in Tally which reflect the quantity of shares purchased or sold.

 

[NiftyFantasy]

I wanted to know if there is a way we can pass the accounting entries in Tally which reflect the quantity of shares purchased or sold.

You can use Inventory option for this..and just do it like any other commodity purchase & sales....
use share name as a commodity and use <nos> as units...simple...

 

[adityasaraf007]

If we follow that option, and at the end of the year pass an entry which converts all our closing inventory to investments, till then thats ok. But what about next year, we won't get the opening balance along with quantity of our investments.

Please advice.

 

[NiftyFantasy]

You have 2 options:
1. Do not seperate your books for new years and carry it for multiple years...
2. Open a new company and feed all your opening balance in it.

regards
Abhi

 

[anubhavsawhney]

I have started a partnership firm with trading of stocks & derivatives as primary business.
Please post journal accounting entries for following-
1.intraday trade for stocks(& nature of profit or loss)
2.intrday trade for futures & options((& nature of profit or loss)
3.positional trade for stock(delivery)
4.postional trade for futures & options.

Thanks

anubhav

 

[harsh435]

Is there any softwere avelable for the calculation of short term/long term capital gain on first come first out basis.I am using tally for accounting but it calculat value on average basis which is not acceptable for income tax purpose.So anybady help me?

 

[shajans]

Is there any softwere avelable for the calculation of short term/long term capital gain on first come first out basis.I am using tally for accounting but it calculat value on average basis which is not acceptable for income tax purpose.So anybady help me?

Google for "investinvestonline" and proceed accordingly !
Thanks,

 

[vondutch9]

Is there any softwere avelable for the calculation of short term/long term capital gain on first come first out basis.I am using tally for accounting but it calculat value on average basis which is not acceptable for income tax purpose.So anybady help me?

Hi, Sorry I`m new to share trading and was wondering how long term capital gains are calculated. For eg if I buy 100 shares of a script A today, 200 shares 3 days later then sell 150 shares. Since the individual shares don`t have an identity so the 100 shares among the one I sold could be from the first lot as well as second lot. And since both the lots were not purchased same day so the gains calculations will differ on both.

Appreciate if you can tell me how is it done and how i need to account those shares (do I need to maintain lot-wise balances ?) etc. Thanks very much in advance!

 

[adityasaraf007]

Hi, Sorry I`m new to share trading and was wondering how long term capital gains are calculated. For eg if I buy 100 shares of a script A today, 200 shares 3 days later then sell 150 shares. Since the individual shares don`t have an identity so the 100 shares among the one I sold could be from the first lot as well as second lot. And since both the lots were not purchased same day so the gains calculations will differ on both.

Appreciate if you can tell me how is it done and how i need to account those shares (do I need to maintain lot-wise balances ?) etc. Thanks very much in advance!

For shares:
Long term = held for 1 year or more from the date of purchase
Short term = sold within 1 year from the date of purchase

If you sell the shares which are held by you for more than 1 year, then no tax is payable (as LTCG on sale of shares is exempt, provided you sell the shares through the stock exchange).

If you sell the shares within 1 year, then it would be short term and would be charged @ 15%.

Now, coming to your point:
You purchased 100 shares on 01-08-10 and again 200 shares on 04-08-10, and sold 150 on 26-08-10.

Your sale of 150 would be considered as 100 (01-08-10) + 50 (04-08-10).

In simple words, the shares which came to your demat a/c first will go out first (FIFO).

 

[vondutch9]

For shares:
Long term = held for 1 year or more from the date of purchase
Short term = sold within 1 year from the date of purchase

If you sell the shares which are held by you for more than 1 year, then no tax is payable (as LTCG on sale of shares is exempt, provided you sell the shares through the stock exchange).

If you sell the shares within 1 year, then it would be short term and would be charged @ 15%.

Now, coming to your point:
You purchased 100 shares on 01-08-10 and again 200 shares on 04-08-10, and sold 150 on 26-08-10.

Your sale of 150 would be considered as 100 (01-08-10) + 50 (04-08-10).

In simple words, the shares which came to your demat a/c first will go out first (FIFO).

Hi Aaditya, thanks for your response. So what I understand from your explanation is that if ever I make a sale of that script within a year, though I make new purchases, i will not be able to benefit from long term capital gains. And in fact most of the traders who regularly trade would seldom have long term capital gains. So my next question is can you get a set-off for short term capital loss against long term capital gains and second is there any advantage if you get a set-off for long term capital loss against short term capital gains.

On a side thought, wondering if I manage different portfolios and don`t touch the shares in portfolio1 for 1 yr but do trade in that script during the year in another portfolio, then would I be eligible to benefit from long term capital gains ? The assessment is done on individual basis or the portfolio basis ?