This article describes how stock broker make his accounts more professionally like professional accountant and you’ll also learn about different transactions and journal entries relating to stock broking profession.
Like any other professional stock broking is loyal profession. Stock broker is a person who
purchases and sells of shares on the behalf of investors. Investor can not buy or sell shares himself. Even, making of DEMET account, it is possible to purchase and sell shares easy way by investor.
But only authorized stock broker has been given power to open DEMAT account by SEBI. So, professional stock broker takes the commission of his work. That is called brokerage. Now after basic knowledge of stock broking and stock broker to know maintaining stock broker accounts is very necessary.
Tally’s new software Tally.ERP 9 gives power to professional stock broker to record all their accounts himself.
Step 1. Create company of stock broking
Like other company creation, stock broker has also to create their own stock broking company in Tally.ERP 9 . Follow the following steps
Gate way of tally >> company info >> Create Company
If professional stock broker purchases and sells his own shares also, then he should create company account with inventory. Otherwise, only account is sufficient option in company creation.
Step 2. Create ledger and inventory accounts
Gateway of tally >> account info >> ledger >> create
a) Create fixed assets account like office of stock broker, computer, furniture, other machinery under fixed asset.
b) Create different investors account under sundry debtor account.
c) Create brokerage account under indirect income account
d) Create expenses account under indirect expenses
e) Create bank account under bank account
f) Create company whose shares are purchased under sundry creditor account
g) Create inventory account by following steps
Gate way of tally >> inventory info >> stock measurement >> create
a) Basic shares are counted in nos. and formal name is number like one share, or hundred shares. So stock measurement will be nos. as full form number.
b) Create also stock item , here you can write different company’s share , suppose reliance shares , tata shares , icici bank shares , hdfc bank shares etc .
Step 3. Pass the voucher entry
a) When a person opens DEMAT account and direct approach to stock broker for buying shares at that time stock broker gets the cheque from party advance for buying the shares or even some authorized banks like SBI are providing online fund transfer for buying any company shares. but entry must be same
Bank account / Credit Card Receipt account Dr. (Purchase price of share + brokerage)
Party account Cr. (Purchase price )
Brokerage account Cr. ( brokerage )
This entry will be passed in receipt voucher of tally
b) when stock broker purchase the share on the behalf of party .
Shares in company account Dr. ( Purchase price )
Bank account Cr.
c) When stock broker transfers these share to party under DEMAT account
Party Account Dr.
Shares in company account Cr.
d) When broker purchases his own shares
Purchase account Dr. ( Write different shares in item column with rate and quantity )
Bank account Cr.
e) When broker sells his own shares
Bank account Dr.
Sale account Cr.
Like any other professional stock broking is loyal profession. Stock broker is a person who
purchases and sells of shares on the behalf of investors. Investor can not buy or sell shares himself. Even, making of DEMET account, it is possible to purchase and sell shares easy way by investor.But only authorized stock broker has been given power to open DEMAT account by SEBI. So, professional stock broker takes the commission of his work. That is called brokerage. Now after basic knowledge of stock broking and stock broker to know maintaining stock broker accounts is very necessary.
Tally’s new software Tally.ERP 9 gives power to professional stock broker to record all their accounts himself.
Step 1. Create company of stock broking
Like other company creation, stock broker has also to create their own stock broking company in Tally.ERP 9 . Follow the following steps
Gate way of tally >> company info >> Create Company
If professional stock broker purchases and sells his own shares also, then he should create company account with inventory. Otherwise, only account is sufficient option in company creation.
Step 2. Create ledger and inventory accounts
Gateway of tally >> account info >> ledger >> create
a) Create fixed assets account like office of stock broker, computer, furniture, other machinery under fixed asset.
b) Create different investors account under sundry debtor account.
c) Create brokerage account under indirect income account
d) Create expenses account under indirect expenses
e) Create bank account under bank account
f) Create company whose shares are purchased under sundry creditor account
g) Create inventory account by following steps
Gate way of tally >> inventory info >> stock measurement >> create
a) Basic shares are counted in nos. and formal name is number like one share, or hundred shares. So stock measurement will be nos. as full form number.
b) Create also stock item , here you can write different company’s share , suppose reliance shares , tata shares , icici bank shares , hdfc bank shares etc .
Step 3. Pass the voucher entry
a) When a person opens DEMAT account and direct approach to stock broker for buying shares at that time stock broker gets the cheque from party advance for buying the shares or even some authorized banks like SBI are providing online fund transfer for buying any company shares. but entry must be same
Bank account / Credit Card Receipt account Dr. (Purchase price of share + brokerage)
Party account Cr. (Purchase price )
Brokerage account Cr. ( brokerage )
This entry will be passed in receipt voucher of tally
b) when stock broker purchase the share on the behalf of party .
Shares in company account Dr. ( Purchase price )
Bank account Cr.
c) When stock broker transfers these share to party under DEMAT account
Party Account Dr.
Shares in company account Cr.
d) When broker purchases his own shares
Purchase account Dr. ( Write different shares in item column with rate and quantity )
Bank account Cr.
e) When broker sells his own shares
Bank account Dr.
Sale account Cr.
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