Futures transactions in Tally is very much easy to create if you know the accounting entry. I always say that to know Tally, you just have to know basic accounting.
So. if you had at anytime a doubt about how to create entries for futures transactions in tally, following post is your doubt buster.
To create entries for futures transactions in Tally, you will need to create three ledgers.
- Futures Purchase Account
- Futures Sales Account
- Brokers Account
Futures Purchase Account is required to create purchase entries for futures contracts. In the same way Futures Sales Account is needed for sales entries in futures contracts.
The most important thing you have know about creating accounting entries for futures contracts in Tally is Margin Money you paid or you got.
For example, you bought 100 futures contracts of Tata for June. In other words, you purchased 100 contracts Tata June Futures.
You paid margin money of ₹10,000 to your broker. This is the amount you need to know every time for passing the entry in Tally.
Creating ledgers for passing the Futures Entry
If you do not know how to create ledgers, watch this video and then come back here.
Futures Purchase Account
These are the exact settings which you need to have while creating ledgers.
Futures Sales Account
These are the three ledgers you will need to create.
Another thing which you need to create is Stock Item named Tata because we are having that in the example for our futures transactions.
I have also created another cool video about Creating Stock Items in Tally. Go and watch that video and learn how to create stock items in Tally.
Stock items are basically required to have a count on the items of stock you have. In this case we will use it to have a count on the number of contracts traded.
Entry for Short Selling Futures
You would be surprised to know that entry for short selling futures is same as selling futures.
For those who don’t know what short selling is, it is selling without having the stock and that is possible only on the exchanges. Then at a later point, you will purchase the same quantity and the position will be zero or in technical terms, it will be squared off.
In Tally, when you will create entry for selling, Tally will show you Negative Stock, because you are selling what you don’t have and Tally does not understand the concept of short selling.
Tally will give you a quick warning of negative stock while creating a short selling entry. Just ignore it.
Finally, now you are duly qualified to watch the video of creating entries for futures transactions in tally.
Create Entries for Futures transactions in Tally
At the End…
If you have any questions, comment down below and I’ll be happy to answer them.