If I sold stock shares from my company, how should I register the money from that sell in my books? As cash and capital stock, earnings, or owners' equity account?

when the company sells the Stocks, the company is going to receive cash and the buyer of the stocks is deemed as Shareholder that has a right to receive dividend.

At the date of transaction the company is going to pass the following entry to reflect the transaction in the books of accounts.


Dr. Cash A/c XX
Cr. Common Share XX

in case that the market price per share is above of par value , the acess amount should be treated as paid - in capital .

Dr. Cash A/c XX
Cr. Share Capital A/c XX
Cr. Paid up in Capital A/c XX


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