Q.

17
You can buy back 10,000 shares of Rs. 100 each at Rs. 152 per share.
Date Particulars Debit Rs. Credit Rs
1 Due: General Reserve 8,00,000
Equity Share Capital A/c (10,000*100) Dr. 10,00,000 Profit & Loss 4,00,000
Premium on Buyback A/c (10,000*52) Dr. 5,20,000 Security Premium 3,20,000
To Equity Shareholder A/c 15,20,000
No of Shares 10,000
2.a. Arrangement: (Premium): Buyback price 152
Security Premium A/c Dr. 3,20,000 Face Value 100
General Reserve A/c Dr. 2,00,000 Premiume 52 Loss Dr.
To Premium on buyback A/c 5,20,000
Premium Shares
2.b. Arrangement: (CRR): 5,20,000 10,00,000
General Reserve A/c Dr. 6,00,000 Security Premium 3,20,000 GR 6,00,000
Profit & Loss A/c Dr. 4,00,000 General Reserve 2,00,000 P&L 4,00,000
To CRR A/c 10,00,000
Overdraft:
3 Bank Overdraft used for shortage of fund: Bank balance 4,00,000
Cash/Bank A/c Dr. 11,20,000 Received Or paid Nil
To Bank Overdraft A/c 11,20,000 Total Bank Balance 4,00,000
Required for Buyback -15,20,000
4 Payment: Shortage -11,20,000
Equity Shareholder A/c Dr. 15,20,000
To Cash/bank A/c 15,20,000