A company purchase its own shares of Rs

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Shares

Question:

A company purchase its own shares of Rs 5,00,000 from the market. What this process is called?

Options:

Re-issue of Shares

Buy-back of Shares

Bonus Issue of Shares

Forfeiture of Shares

Correct Answer:

Buy-back of Shares

Explanation:

The correct answer is Option (2) → Buy-back of Shares