Dear reader, are you looking to know how to pass a journal entry for purchase of share? Then you came to the right article. In this article, you will get to know about how to pass the journal entry for shares purchasing. This article is written after referring 7 blogs on this topic. To purchase a shares you need a Demat account. After opening Demat Account you need to transfer the funds there.
JOURNAL ENTRY FOR PURCHASE OF SHARES
Investment in Shares Account Debit
Bank Account Credit.
In this case to account the purchase of shares transaction you need to debit Investment in Shares Account and Credited to Bank Account.
JOURNAL ENTRY FOR PAYMENT OF BROKERAGE WHILE BUYING SHARES
Brokerage Expenses Account Debit
Bank Account Credit.
JOURNAL ENTRY FOR TRANSFERING BROKRAGE EXPENSES TO INVESTMENT IN SHARES ACCOUNT
Investment in Shares Account Debit
Brokerage Expenses Account Credit.
SHARE PURCHASE JOURNAL ENTRY EXAMPLE
Mr.A purchased 25 shares of XYZ company for ₹ 35000/- and paid brokerage of ₹ 150/-
We need to pass the following journal entry
Investment in Shares Account Debit for ₹ 35000/-
Brokerage Account Debit for ₹ 150/-
Bank Account Credit for ₹ 35150/-
CONCLUSION
Dear reader in this article you get to know about Journal Entry for Purchase of shares with brokerage. Hope you understood the things better. If you have any query regarding this article kindly comment below.
FAQs
Purchase shares of Rs 15000 of HDFC bank?
Investment in Shares Account Debit for Rs 15000/-
Bank Account Credit for Rs 15000.
What is the journal entry when shares are purchased and brokerage is paid?
Investment in Share Account Debit
Brokerage Expenses Account Debit
Bank Account Credit
Journal entry for Investment In shares?
Investment in Shares Account Debit
Bank Account Credit