Share Contract Note Entry in Tally: A Comprehensive Guide
Tally is one of the most widely used accounting software in India. It is a robust software that offers a wide range of features and functionalities for managing financial transactions, inventory, payroll, and more. Share Contract Note Entry in Tally is one of the features that is highly beneficial for stockbrokers and investors who deal in stock trading. In this article, we will discuss what is Share Contract Note Entry, why it is important, and how to enter Share Contract Note in Tally.
What is Share Contract Note Entry?
A Share Contract Note is a legal document that captures the details of the transaction between a buyer and a seller in the stock market. It contains information such as the name of the company, the number of shares purchased or sold, the price at which the transactions took place, the broker`s commission, and other related details. The primary purpose of the Share Contract Note is to provide transparency in the stock market transactions and maintain an audit trail of all the transactions.
Why is Share Contract Note Entry Important?
Share Contract Note Entry is a critical component of stock trading, and it is essential to maintain accurate records of all the transactions. The Share Contract Note Entry helps to keep track of the purchase and sale of shares, track the gains and losses, and calculate the taxes to be paid. Furthermore, Share Contract Note Entry helps in legal compliance and provides evidence in case of any disputes or legal issues that may arise.
How to Enter Share Contract Note in Tally?
Entering Share Contract Note in Tally is a straightforward process. Here are the steps to follow:
Step 1: Go to the Gateway of Tally and select the Accounting Vouchers option.
Step 2: Select the Sales voucher type and choose the Share Contract Note from the list of available voucher types.
Step 3: Enter the details of the transaction such as the name of the company, the number of shares purchased or sold, the price at which the transactions took place, and the broker`s commission.
Step 4: Verify the details entered and save the Share Contract Note.
Step 5: The Share Contract Note will now be displayed in the Stock Summary and other relevant reports in Tally.
Conclusion
In conclusion, Share Contract Note Entry is an essential feature offered by Tally for stockbrokers and investors. It helps to maintain accurate records of all the stock market transactions, track gains and losses and calculate taxes. By following the steps mentioned above, you can easily enter Share Contract Notes in Tally and make the most of this powerful software.