How to deal with the accounting entries of the company's share repurchase

There are generally three ways for companies to buy back shares.

1. When the treasury shares are withdrawn at face value, the accounting entries are:

Actual price paid:

Borrow: stock,

Loan: bank deposit.

Repurchase of share capital:

Borrow: share capital,

Loan: stock.

2. The recovery price is lower than the share capital:

Actual price paid:

Borrow: stock,

Loan: bank deposit.

Repurchase of share capital:

Borrow: share capital,

Loan: stock,

Loan: capital reserve.

3. The recovery price is higher than the share capital:

Actual price paid:

Borrow: stock,

Loan: bank deposit.

Repurchase of share capital:

Borrow: share capital,

Capital reserve,

Retained income,

Loan: stock.