How to Record Shares Purchase and Sales Transactions in Tally.ERP 9

You may invest your money in share market. This investment may be for short period and for long period. To record shares as long term investment is very easy. You just pass the entry of payment. But when you deem shares investment as your short period investment, at that time, you have to follow its complete procedure. For this record, I am using Tally.ERP 9 software. I will teach you to record of shares transactions with following example:


You have bought Shares of following companies on 1st Dec. 2011.

Shares of Reliance Company =  1000 shares at Rs. 100 each.

Shares of Tata Company = 200 shares at Rs. 50 each

Shares of Vepro Company = 2000 shares at Rs. 2 each

{ Note: These are the imaginary figures}

You have sold shares of following companies on 3rd Dec. 2011


Shares of Reliance Company =  500 shares at Rs. 100 each.


Now, in tally, we follow following steps :

1st Step : To Create Unit of Measures

We are measuring these shares in nos., so we will have to create unit of measures by going to inventory info.

2nd Step : To Create Stock items

You are dealing with three companies. So, you will create three stock items in inventory info. If you will deal with more companies, you can create more stock items. You can easily create short stock items for reliance shares, you can create R Shares etc.

3rd Step : To Create  Group of Investment in Shares

Just go to group from accounting info and then create investment in shares group. under investment.

4th Step : To Create Ledger Purchase of Shares Account 

In 4th step, you have to create ledger of purchase of shares account by going to account info and then ledger and then creation. This account will be under investment in shares group which we already have made in third step.

5th Step : To Create Ledger of Sales of Shares Account 

This ledger account is also created under investment in shares.

5th Step : To Create Ledger Account of Broker

This ledger account will be created under sundry creditor.

6th Step : To Create Ledger Account of  Your Bank 

This ledger account will be created under bank account.

7th Step : To Pass the Voucher Entry of Purchase of Shares of Companies

Just choose journal voucher and pass the following voucher entry

Shares in Companies Account Dr.

Broker Account


8th Step : To pass the Voucher Entry of Sales of Shares of Companies



9th Step : See Balance Sheet

In this balance sheet, you will see investment of shares and also it will be shown in current asset as closing stock which will be adjusted with the profit and loss account in liability side of balance sheet. So, don't worry about this.

{Important : 50 CAs took a meeting on this point. They decided that this way of showing the balance sheet is best because they are all devotees of Income Tax Department and  if you deal in shares, it means it is just like product for you. If you will get any profit or loss on the sales of any company's share it will automatically be shown in profit and loss account. }

Liability side, we are opening balance in profit and loss account as Rs. 114000. This is just like opening stock of shares like any other product. But because we sell some reliance shares, so closing stock is showing Rs. 64000.



10th Step : See Stock of Shares Summary

This share stock summary will give you idea what shares stock have in your business. So, you can make better planning for future buying or selling of shares.


COMMENTS

Comments on this Website: 8
Loading...
.
Share above Content to Your Friends



Name

access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
false
ltr
item
Accounting Education: How to Record Shares Purchase and Sales Transactions in Tally.ERP 9
How to Record Shares Purchase and Sales Transactions in Tally.ERP 9
http://1.bp.blogspot.com/-FAxh55jrCes/TvBh6_wyvdI/AAAAAAAAHLg/glOYlk1JbYw/s640/tally1.PNG
http://1.bp.blogspot.com/-FAxh55jrCes/TvBh6_wyvdI/AAAAAAAAHLg/glOYlk1JbYw/s72-c/tally1.PNG
Accounting Education
http://www.svtuition.org/2011/12/how-to-record-shares-transaction.html
http://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2011/12/how-to-record-shares-transaction.html
true
2410664366776677676
UTF-8
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock