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Accounting on sale of shares

edited November 2013 in Accounting
When a stock is sold through a broker, the realized amount (which is pending for settlement by the broker) should be shown in the broker’s name under Sundry Debtors on the assets side with corresponding increase in the Capital Gain (when sold at a higher rate). But the Account Module shows the sold amount as negative balance (within bracket) under Sundry Creditors on the liability side of the balance sheet. 

Comments

  • Your point is right, it should display under Sundry debtors if the amount is receivable. Based on the feedback with some users, we have created broker ledgers under Sundry Creditors. We have retained this for the convenience of the user so that you can always see all the brokers under one list and if the amount is receivable, it appears in bracket (debit balance). The JV is correct and capital gains are posted correctly. This is just for the display for your convenience.

     

    We may provide the option under Balance Sheet print report which normally gets printed at the end of the year, to move brokers to Sundry Debtors if the amount is receivable.

     

    We will implement this change based on the feedback from the users. 

  • I would prefer it under Sundry Debtors.
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