In a Pvt. Ltd company, there takes place a buy & sell transaction of shares between two partners of same company.  Suppose Ram has shares of Rs. 20 lakhs & Shyam has shares of  Rs. 10 lakhs. Now Ram sells his Rs. 5 lakhs of shares  to Shyam, In this way, both have equal shares.  In this case, we know that change in share pattern should be incorporated in OCR. Except this,

What sort of accounting journal entries should be passed in our ledgers?

Sun Bahadur jee we can't guide you on OCR related tasks.

Initial Shareholdings:

Ram: Rs. 20 lakhs

Shyam: Rs. 10 lakhs

Transaction:

Ram sells Rs. 5 lakhs worth of shares to Shyam.

Post-transaction, both Ram and Shyam have shares worth Rs. 15 lakhs each.

Accounting Entries:

1. Entry for Ram's Sale of Shares:

Ram is selling his shares, which means his shareholding decreases by Rs. 5 lakhs and he will receive Rs. 5 lakhs in consideration from Shyam.

Journal Entry:

Dr. Bank/Cash Account               Rs. 5,00,000

    Cr. Ram's Capital/Shareholding Account   Rs. 5,00,000

(This entry records the receipt of money by Ram for selling his shares.)

2. Entry for Shyam's Purchase of Shares:

Shyam is purchasing shares worth Rs. 5 lakhs, which means his shareholding increases by Rs. 5 lakhs and he pays Rs. 5 lakhs in consideration to Ram.

Journal Entry:

Dr. Shyam's Capital/Shareholding Account    Rs. 5,00,000

    Cr. Bank/Cash Account                    Rs. 5,00,000

(This entry records the payment made by Shyam for purchasing shares from Ram.)

1. The Bank/Cash Account is debited by Rs. 5 lakhs when Ram receives the payment, reflecting an inflow of funds.

2. Ram’s Capital/Shareholding Account is credited by Rs. 5 lakhs, reducing his shareholding.

3. Shyam’s Capital/Shareholding Account is debited by Rs. 5 lakhs, increasing his shareholding.

4. The Bank/Cash Account is credited by Rs. 5 lakhs, reflecting the outflow of funds when Shyam makes the payment.

Summary of Post-Transaction Shareholdings:

Ram: Rs. 15 lakhs (Rs. 20 lakhs - Rs. 5 lakhs sold)

Shyam: Rs. 15 lakhs (Rs. 10 lakhs + Rs. 5 lakhs purchased)

These journal entries accurately reflect the changes in shareholdings and the cash/bank transactions resulting from the share transfer between Ram and Shyam.