Accounting treatment for share buyback

The company has made a share buyback for Rupees 4 crores. The company has share premium account and profit and loss account of 9 crores and 2.5 crores respectively. can the excess amount after reducing the face value of Equity be accounted as a reduction from share premium completely.

If not what would be the proper accounting. 

Replies (1)
Accounting treatment is correct

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