| SR. No | Description | Debit $ | Credit $ |
| 1 | Treasury Stock | 225000 | |
| Cash | 225000 | ||
| (45*5000) | |||
| 2 | Cash | 98000 | |
| Treasury Stock | 90000 | ||
| Paid-in Capital from Treasury Stock | 8000 | ||
| ( Being Entry for Resold 2,000 of the treasury shares at $49 per share) |
|||
| 3 | Cash | 20000 | |
| Paid-in Capital from Treasury Stock | 2500 | ||
| Treasury Stock | 22500 | ||
| ( Being Entry for Resold 500 of the treasury shares at $40 per share) |
Effect of the above transaction on following Account
| Assets | Liabelity | Stockholder’s Equity |
Paid in Capital | Retained Earning | Net Income | |
| 1 | Decrease | NE | Decrease | NE | NE | NE |
| 2 | Increase | NE | Increase | NE | Decrease | NE |
| 3 | Increase | NE | Increase | Increase | NE | NE |
