Do we include preference shares ( fully paid up) when journalising for buy back? Or is it just for equity shares?

Question

Krishi · Answer

Okay, thanks!

Deepak · Answer

Only if mentioned in que we should show JE, or else no needed

riddhi · Answer

only equity

Krishi · Answer

We will, but while calculating 25 percent of the shares, will be calculate it for 25% of equity shares or 25% of equity plus preference shares

Radhika · Answer

We will create a CRR for it..

Krishi · Answer

Balance sheet mein it is given- equity shares of 50 lakh of 20 each and preference shares of 10 lakh of 100 each. Ques- pass journal entry for buy back 25 percent of the paid up capital. Will we include preference shares as well or just equity shares?

Ankitha · Answer

Can you detail your question a bit?

Do we include preference shares ( fully paid up) when journalising for buy back? Or is it just for equity shares?

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