1.Buy Back of Shares
The term buy back
means the buying back by a company of its shares. As per the provisions made
under section 68, 69 & 70 of Companies Act-2013 a company may purchase its
own shares out of
1.Its free reserve
2.Securities premium or
3.Fresh issue of any shares or others.
1. For Final Call due
Equity share final call A/c Dr
To Equity share capital A/c
2. For Final call money
received
Bank A/c Dr
To Equity share final call A/c
1. For Investment sold
a. Sold
at profit
Bank A/c Dr
To Investment A/c
To profit &
Loss A/c
b. Sold
at loss
Bank A/c Dr
Profit & Loss
A/c Dr
To Investment A/c
2. For Preference Shares
a. Issued
at par
Bank A/c Dr
To Pref share capital A/c
b. Issue
at premium
Bank A/c Dr
To Pref share capital A/c
To Securities
premium A/c
3. For Buy back due
a. Due
at par
Equity share capital A/c Dr
To Equity shareholder A/c
b. Due
at premium
Equity share
capital A/c Dr
Premium on Buy
back A/c Dr
To Equity
shareholder A/c
c. Due
at Discount
Equity share
capital A/c Dr
To Equity
shareholder A/c
To Capital
Reserve A/c
4. For Payment made
Equity
shareholder A/c Dr
To Bank A/c
5. For Written off
Securities
premium A/c Dr
To Premium on Buy
back A/c
6. For Transfer to CRR
Divisible profit
A/c Dr
Securities
Premium A/c Dr
To Capital
Redemption Res A/c
1. For declaring Bonus
shares
CRR A/c Dr
Non-DP A/c Dr
Divisible Profit
A/c Dr
To Equity
Shareholder A/c
2. For issuing Bonus
shares
Equity
Shareholder A/c Dr
To Equity share
capital A/c
|
Divisible
profit /Free Reserve/ Revenue Reserve
|
Capital
Reserve/Non-Divisible profit
|
|
1. General Reserve A/c
|
1. Sec premium
|
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2. Profit & Loss A/c
|
2. Capital Reserve
|
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3. Dividend equilisation Res
|
3.Investment Allow Reserve
|
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4. Investment Fluctuation Res
|
4.Development Rebate Reserve
|
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5. Sinking Fund, Insurance Fund, Workmen compensation fund.
|
5. Capital Redemption Reserve
|
|
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6. Share forfeiture A/c
|
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7. Profit prior to Incorporation
|
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8. Revaluation Reserve
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