Company purchase own shares accounting entries

Company purchase own shares accounting entries

Posted: Enrey Date: 28.06.2017

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Hire purchase is an agreement between two parties in which one party purchase any asset from other party. Because he has no money to pay, so he pays per month hire charges.

Vendor has the possession of asset. When buyer pays total price of assets in the form of hire charges, then asset is transferred to its purchaser. If buyer will become defaulter, vendor has right to get his asset from hire purchaser.

Accounting Entries for Buyback of Shares

There are four methods of accounting for hire purchase. When transactions or event happen, we record them.

Journal Entries in the books of Purchaser a For buying assets on hire purchase Asset on hire purchase account Dr. Interest on hire purchase account Cr.

Assets on hire purchase account Dr. Accounting CA Financial financial accounting.

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company purchase own shares accounting entries

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