JOURNAL ENTRY FOR PURCHASE OF SHARES

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.  

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