Company buy back of own shares and accounting entries
Could anyone help?
Here is the scenario:
Director A currently has 30% of shares and director B 60%. The directors are brothers and after much disagreement have agreed between them that the company will buy director B for £150K as director A doesn't have enough funds. The company takes out a loan to pay the director B. P&L reserves £170K.
How would accounting entries work here?
Thanks in advance.