You may invest your money in share market. This investment may be for short period and for long period. To record shares as long term investment is very easy. You just pass the entry of payment. But when you deem shares investment as your short period investment, at that time, you have to follow its complete procedure. For this record, I am using Tally.ERP 9 software. I will teach you to record of shares transactions with following example: You have bought Shares of following companies on 1st Dec. 2011. Shares of Reliance Company = 1000 shares at Rs. 100 each. Shares of Tata Company = 200 shares at Rs. 50 each Shares of Vepro Company = 2000 shares at Rs. 2 each { Note: These are the imaginary figures} You have sold shares of following companies on 3rd Dec. 2011 Shares of Reliance Company = 500 shares at Rs. 100 each. Now, in tally, we follow following steps : 1st Step : To Create Unit of Measures We are measuring these shares in nos., so we will have to create unit of measures by going to inventory info. 2nd Step : To Create Stock items You are dealing with three companies. So, you will create three stock items in inventory info. If you will deal with more companies, you can create more stock items. You can easily create short stock items for reliance shares, you can create R Shares etc. 3rd Step : To Create Group of Investment in Shares Just go to group from accounting info and then create investment in shares group. under investment. 4th Step : To Create Ledger Purchase of Shares Account In 4th step, you have to create ledger of purchase of shares account by going to account info and then ledger and then creation. This account will be under investment in shares group which we already have made in third step. 5th Step : To Create Ledger of Sales of Shares Account This ledger account is also created under investment in shares. 5th Step : To Create Ledger Account of Broker This ledger account will be created under sundry creditor. 6th Step : To Create Ledger Account of Your Bank This ledger account will be created under bank account. 7th Step : To Pass the Voucher Entry of Purchase of Shares of Companies Just choose journal voucher and pass the following voucher entry Shares in Companies Account Dr. Broker Account 8th Step : To pass the Voucher Entry of Sales of Shares of Companies 9th Step : See Balance Sheet In this balance sheet, you will see investment of shares and also it will be shown in current asset as closing stock which will be adjusted with the profit and loss account in liability side of balance sheet. So, don't worry about this. {Important : 50 CAs took a meeting on this point. They decided that this way of showing the balance sheet is best because they are all devotees of Income Tax Department and if you deal in shares, it means it is just like product for you. If you will get any profit or loss on the sales of any company's share it will automatically be shown in profit and loss account. } Liability side, we are opening balance in profit and loss account as Rs. 114000. This is just like opening stock of shares like any other product. But because we sell some reliance shares, so closing stock is showing Rs. 64000. 10th Step : See Stock of Shares Summary This share stock summary will give you idea what shares stock have in your business. So, you can make better planning for future buying or selling of shares.