Earlier I created a video on passing stock market entries in Tally but that was from the point of view of business.

If you are trading in stock markets or securities markets, that was the video for you from which you can learn to pass entries in Tally.

But this video is for those who invest in stock markets. There is core difference between investment and trading. This video tutorial will let you know to pass entries in Tally, if you invest in stock or securities markets.

You need to know…

Before you directly jump on to the video, here are some of the things you might want to keep in mind.

I have checked the option Integrate Account and Inventory to NO.

Accounting-Options-in-Tally

The reason for checking this option to No is simple.

If we integrate accounts and inventory, the closing stock will appear in Profit and Loss account. But since it is our investment, it must be shown in the Balance Sheet and not in Profit and Loss account.

Try by checking the option to YES and you will know what I am talking about.

I have also created a group, three ledgers and a stock item.

  • 1 Group – Investment in Shares under Investments.

Here is how you can create a group in Tally:Create-a-group-in-Tally

  • Go to Gateway of Tally.
  • Then go to Accounts Info.
  • You will option of Groups, press enter.
  • You will see two options i.e. Single Group and Multiple Groups.
  • Now, if you want to create only one group, you can select Create under Single Group or else select Create under Multiple Groups if you want to create multiple groups. For example, you may invest in mutual funds, you can create a group of named Mutual Funds.

 

  • 3 Ledgers
  1. Share Broker under Sundry Creditor or Sundry Debtor
  2. Share Brokerage under Capital Account because it is your investment it will be reflected under capital account and not in profit and loss account.
  3. Reliance under Investment in Shares which we earlier created.

I have also created a stock item named Reliance so I can have a record of how many shares I have, at what price I purchased those shares and what is the value per share.

If you want to know how to create a Stock Item, please go and do read the earlier article I wrote for stock market entries in Tally.

Advantages of this Technique

Most basic advantage of this technique is you can pass stock market entries in Tally as an investment also.

Another advantage in Tally is that you can also compute capital gains in Tally year from year as per Income Tax Law.

The advantage which I found useful is you can have all the details of stocks right from number of shares to cost per share you bought. This is amazing and it saves time too.

The biggest advantage is that now you do not need to find another software or addon to pass stock market entries if you are an investor. So that saves money too.

In total this technique saves money and time both.

Here is the video tutorial you are waiting for.

Stock Market Entries in Tally as an Investment

Did you thought any other way of passing stock market entries in Tally as an investment? Which was it?

Please share it in comments! 🙂