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    narc02's Avatar
    narc02 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 31, 2013, 10:58 AM
    Treasury Shares and Retained Earnings
    Hi,

    I would like to know if free/unappropriated retained earnings account can be used when treasury shares are sold at a lower price?

    Thank you very much.
    Fidget1's Avatar
    Fidget1 Posts: 105, Reputation: 4
    Junior Member
    		  
    #2

    Mar 31, 2013, 01:29 PM
    Yes. The loss is first debited against the paid in capital from treasury shares account if there is one, and if the loss brings that account to zero, then the remainder is debited to retained earnings.
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