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Buyback

Accountancy

In buyback why do we credit Equity shares buy back a/c? Can we not credit Equity share holders a/c similar to what was done in case of redemption of pref shares?

Priyanka Udeshi

CA Final

★ 14K+

27-Mar-21 20:26

302

Answers (1)

yeah you can , but for the understand you done a buy back , you better credit buy back a/c in second entry you can credit equity SH a/c i.e equity buy back a/c dr to equity sh a/c and in next entry you can credit bank a/c