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Error in closing balances for stocks

edited March 2013 in General

i bought 60 share of RIIL at the average of Rs. 674.50

i sold 30 shares yesterday at Rs. 736. So the average for 30 shares must be Rs. 617 but in MProfit it shows Rs. 540.00

I have noticed two different closing balances in stocks category, one as shown in summary screen and one as per trading report. Why are the two closing balances different?

Comments

  • The closing balances as per summary screen is calculated based on capital gain calculations using FIFO (First In First Out) method. As per the income tax rules, the capital gains will be calculated as per FIFO basis and the closing balance for the remaining quantity will be calculated. You can also get the same closing balance report under report category ‘Accounts -> Stocks’ which displays the remaining quantities and closing balances for all the stocks. These closing balances should tally with your books of accounts.

    The closing balances displayed under Trading reports are calculated based on the average purchase prices. The trading report is designed for the traders who wants to take a call on their trading strategies based on their average cost or profit/loss for the scrip. When the stock is sold, the profit/loss for the stock is calculated based on the average purchase price and the remaining balance quantities will continue with the same average purchase price, which becomes the closing balance for that stock.

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