Fund Accounting Journal entries

Buy transactions-

 

On effective date -

 Cost a/c dr

                        To payable a/c

 

On Settlement date -

 Payable a/c dr

                         To cash a/c

 

Sell transactions-

 

On effective date -

Receivable a/c dr 

                          To Cost a/c

 

On Settlement date -

 Cash a/c dr

                         To receivable a/c

 

Fees - management/audit

 

On effective date -

Expense a/c dr

                        To other payable a/c

 

On Settlement date -

Other payable a/c

                           To cash a/c

Interest collected - 

 

On effective date -

Income receivable a/c dr

                          To Interest a/c

On Settlement date -

Cash a/c dr

                   To Income receivable a/c

 

Dividend received -

 

On effective date -

Income receivable a/c dr

                        To income a/c

On Settlement date -

  Cash a/c dr

                      To income receivable a/c

 

Open futures - No journal entries

 

Closing futures -

On closing position -

 Appreciation a/c dr

                             To realize gain a/c

 

On closing position -

Depreciation a/c dr

                              To realize loss a/c

 

Buycal/Buyput option

On effective date -

cost a/c dr

                        To Sec purchased payable a/c

 

On Settlement date -

Sec purchased payable a/c dr

                                   To cash a/c

 

 

 

Salecal/Saleput option

 

On effective date -

Sec sold receivable a/c dr

                                    To Cost a/c

 

On Settlement date -

Cash a/c dr

                                      To sec sold receivable a/c

 

Writing cal/put

On effective date -

                                Sec sold receivable a/c dr

                                       To short positions a/c

On Settlement date -

                                     Cash a/c dr

                                        To sec sold receivable a/c

 

Buying back cal/put

On effective date -

                          Short position a/c dr

                          Realize gain/loss dr

                                     To sec purchased payable a/c

On Settlement date -

Sec purchased payable a/d dr

                          To cash a/c

 

 

Opening IRS long position

 Securities at value a/c dr

                          To cash a/c

 

 

Opening IRS short position

 

Cash a/c dr

                         To short position a/c

 

Closing IRS long position

On effective date -

 

 Sec sold receivable a/c dr

                          To other payable a/c

On Settlement date -

 

Other payable ac dr

                          To cash a/c

 

Gain on IRS

On effective date -

 

Realize gain a/c dr

                           To appreciation capital a/c

On Settlement date -

 

Cash a/c dr

                          To other income receivable a/c

 

Loss on IRS

On effective date -

 

Realize loss a/c dr

                            To depreciation capital a/c

On Settlement date -

 

Other payable a/c dr

                                   To cash a/c

Commission expense

   On effective date -

 

 Broker exp a/c dr

                     To commission payable a/c

 

On effective date -

 Commission payable a/c dr

                                   To cash a/c

 

Bond at par

 

 

On effective date - 

Cost a/c dr

                    To bond payable a/c

half year - 

Interest exp a/c dr

                           To  cash a/c

At maturity 

 

Interest exp a/c dr

bond payable a/c dr

                                To cash a/c

 

Premium bond

 

On effective date - 

 Cash a/c dr

              To uamortized premium a/c

              To bond payable a/c

half year - 

Interest exp a/c dr

Bond prem amort a/c dr

                               To  cash a/c

At maturity 

 

Interest exp a/c dr

bond payable a/c dr

Bond prem amort a/c dr

                                 To cash a/c

 

Discount bond

 

On effective date - 

 

Cash a/c dr

Unamortized discount a/c dr

                           To bond payable a/c

On half year - 

Interest exp a/c dr

Unamortized amort a/c dr

                               To  cash a/c

At maturity 

 

 Interest exp a/c dr

bond payable a/c dr

                                 To cash a/c

Comments

Popular Posts