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Any one can please solve this adjustment of BUY BACK along with explanation

Image attached to the doubt: Any one can please solve this adjustment of BUY BACK along with explanation

Asked by Meet3 Apr 2026961 views

1 answer

  1. Rishika · 8 Apr 2026

    If the company invests in it's own debentures and further cancels it On cancellation, liability of the company gets reduced and so the asset which is the investment Entry Deb. Ac. Dr. 220000 To investments in own debentures Ac. 200000 To capital reserve ac. 20000 Here you can also transfer the profit first to profit on cancellation of deb ac and afterwards to capital reserve ac

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