If buy back is made from free resources then what should be created __________

Name: If buy back is made from free resources then what should be created __________
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Question

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When a company buys back its shares from free reserves, it is required to transfer an amount equal to the nominal value of the shares being bought back to the Capital Redemption Reserve account. This is done to ensure that the company's capital is maintained and not reduced by the buyback.

If Buy Back Is Made from Free Resources Then What