Naveen (Accountant) (47 Points)
14 March 2012Hi, Ours is a Pvt Ltd Company. A share holder purhcased shares of face value Rs.10/- each for Rs.360/- in the company in year Nov 2010. Now the company bought back some of the shares at a price of Rs.1885/-. Please let me know what are the accounting entries need to be passed in the books of accounts for this transaction.
Pankaj Arora
(Learner)
(3134 Points)
Replied 14 March 2012
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Suppose company purchased 100 shares of face value rs.10 @ 1885/- |
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Share Capital Dr. 1000 |
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Security Premium Dr. 18,750.00 |
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Bank A/c Cr. 19,750.00 |
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(being 100 share buyback @ 1875/- premium) |
Naveen
(Accountant)
(47 Points)
Replied 14 March 2012
Dear Pankaj, thanks for your reply. We have also declared interim dividend until Sep-11. we have paid the dividend to all the share holders and also dividend tax has been paid. What would be accouting treatment for this.
Please help.
Pankaj Arora
(Learner)
(3134 Points)
Replied 14 March 2012
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your company gave interim dividend for half yearly co. performance |
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so first create provision |
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Dividend Dr. X |
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Dividend Dist. Tax Dr. X |
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Dividend Payable Cr. X |
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Dividend Dist. Tax Payble Cr. X |
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( Being interim dividend declared @ 20%(watever)) |
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when you will pay … |
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Dividend Payable Dr. X |
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Dividend Dist. Tax Payble Dr. X |
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Bank A/c Cr. X (Being dividend paid) |
Ramesh
(Service)
(498 Points)
Replied 04 December 2012
| Originally posted by : Pankaj Arora | ||
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I think capital redemption reserve account should be credited to the extent of face value of equity capital. Just confirm Rgds, Ramesh
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