Accounting treatment for share buyback

Dhruv Jain (Practicioner) (202 Points)

09 August 2024  

The company has made a share buyback for Rupees 4 crores. The company has share premium account and profit and loss account of 9 crores and 2.5 crores respectively. can the excess amount after reducing the face value of Equity be accounted as a reduction from share premium completely.

If not what would be the proper accounting.