One of those I should know and should be able to find but....
Balance sheet is:
Share capital 120
Share premium 450
Profit & Loss Reserves 200,000
Company makes a purchase of own shares, being 5 shares for £10,000 paid out.
What would be the accounting entries and would this include a capital redemption reserve???
GG
Replies (3)
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journals
Assuming shares nominal value is £1 then
Dr £5 share capital
Dr £9,995 capital redemption reserve
Cr£10,000 bank
Hope that helps.