Peebles Company purchased 2,000 shares of its own £5 par value ordinary shares, paying £14 per share. The shares were originally sold for £9 each. The journal entry to record the purchase of treasury shares includes a debit to

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When a company purchases its own shares, the shares are recorded as Treasury Shares on the balance sheet. Therefore, the journal entry to record the purchase of treasury shares would include a debit to Treasury Shares for the amount paid (£28,000 in this case) and a credit to Cash for the same amount. The other options (A, C, and D) are not applicable in this scenario.

Peebles Company Purchased 2,000 Shares of Its Own £5 Par