Re: Accounting Entries and Taxation for Stocks & F&O-A thread for settling these issu
Got the answer to this by going through the ICAI Guidance Note. Entries have to be done daily into the account: Equity Derivatives Instruments Account for daily margin requirements.
Now, I want to know if we create separate accounts/ledgers for different expiring contracts. i.e. NIFTY Feb & NIFTY Mar etc. Or just one account NIFTY Futures?
1. In case of open position from 1st to the 20th of a month, we have two entries for Margin -one at the time of entering into the position on the 1st and then on closing the position on the 20th. In addition to that, on a daily basis entries need to be done in MTM till position is closed. Was this correct?
Now, I want to know if we create separate accounts/ledgers for different expiring contracts. i.e. NIFTY Feb & NIFTY Mar etc. Or just one account NIFTY Futures?