Limited company buyback of own shares
Posted: 30 Dec 2015, 09:48
Hi
I've looked at lots of forums and I'm still not sure on this. What are the postings required when a limited company buys back some of its own shares - in this case two directors retired and the company bought their shares. The accountant doesn't know.
To account for the money coming out of the bank, I did a bank payment and used nominal code 9998 suspense so that is where the transaction now sits. Part of the total is also an invoice for solicitors' advice which I need to post so that the company can claim the VAT so I need to separate that from the money actually used to purchase the shares.
I'd be really grateful for any help. Thanks.
I've looked at lots of forums and I'm still not sure on this. What are the postings required when a limited company buys back some of its own shares - in this case two directors retired and the company bought their shares. The accountant doesn't know.
To account for the money coming out of the bank, I did a bank payment and used nominal code 9998 suspense so that is where the transaction now sits. Part of the total is also an invoice for solicitors' advice which I need to post so that the company can claim the VAT so I need to separate that from the money actually used to purchase the shares.
I'd be really grateful for any help. Thanks.