how do i compute or put loss on sale of shares (short term) / put in p/l account & balance sheet?

Question

how will put in P/L account & balance sheet , will i less it in the p/L a/c & less from capital in b.s

Answer 1

Record the sale as follows: If your basis was $1,000 and you sold for $900

DR Cash $900
CR Security account on B/S $1,000
DR Loss on sale of Securities $100 (Other income and expense)

Answer 2

If the Shares were bought using the funds of the business as an investment then it is to be calculated by just deducting the cost price and all expenses on transfer from the selling price.
Then show it as an loss on sale of investment in the p&l a\c and the same shall get deducted from the capital in your balance sheet.
However if you bought the shares from your own funds rather than of the business then it will be your personal loss and can only be setoff against your capital gains and not any other head of income. but if you wanna set it off then fill your personal return showing capital loss in the financial year.
You can carry forward for upto 8 consecutive assessment years from the year you claim so.

Answer 3

If shares u are talking about is investment for ur business enitity then u can put loss on sale of these shares in the debit side of p/l a/c n in balance sheet u have to deduct cost price of these sahres from investment value.

Answer 4

Individual transctions of both profit and loss will be first reflected in (1)profit & loss account ( if you are showing gains as business income) (2) short/long term capital gain account ( if you are showing gains as capital gains). Aggregate figures of all transactions will be transferred through profit/loss a/c to CAPITAL ACCOUNT at the end of financial year.

Answer 5

If you cut holes in it for eyes- you are a ghost, if you don't then you are a mattress! I now have a halloween costume idea- a mattress! YEAH!