If a company wants to buy back its shares and it does not have enough free reserves + securities premium to transfer the nominal value of shares its buying back to CRR what entry has to be made ? Is buy back even possible ?
Rocky ( ) (85 Points)
19 July 2015If a company wants to buy back its shares and it does not have enough free reserves + securities premium to transfer the nominal value of shares its buying back to CRR what entry has to be made ? Is buy back even possible ?
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(3511 Points)
Replied 30 July 2015
Record the journal entry for the share buyback. The journal entry is very simple: the firm debits Treasury Stock for the total purchase price and credits Cash for the same amount.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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