Question

in case of buyback at a discount amount of discount is transferred to dash​

Answer 1

Answer:

Capital reserve A/c

Explanation:

Answer 2

Answer:

In case of buyback at a discount amount of discount is transferred to capital reserve a/c.

Explanation:

When a buy-back is conducted using free reserves or a securities premium account, section $69$ of the Companies Act of $2013$ mandates that a sum equal to the nominal value of the shares purchased be transferred to a "Capital Redemption Reserve Account" and that its specifics be disclosed in the balance sheet.

• A share buyback is the act of a company purchasing its own previously issued shares. In case of buyback at a discount amount of discount is transferred to capital reserve a/c.
• A company announces publicly a buyback offer to acquire shares from current shareholders within a specific timeframe. This is a corporate action event.

Shares may only be repurchased using:

(a) Free Reserves (means reserves as per the last audited Balance Sheet which are available for distribution and share premium but not the share application amount).

(b) Share Premium Account.

(c) Any Securities Proceeds However, money from sales cannot be used for the buyback.