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Treasury stocks are the portion of a company's stock that are previously issued and then bought back.

For example, ABC company buys back its shares for $200 million. The company shall record this in shareholder equity on the balance sheet. It will record $200 million as cash under (credit) and $200 million as treasury stock (debit).

Companies purchase treasury stock to increase net assets (buying low and selling high), support the company's stock price, stay away from a takeover, and reward esteemed employees with stock.

An account's normal balance alludes to the debit or credit balance that's normally expected from an entry. This concept is ordinarily utilized in the double-entry accounting method.

The normal balance of treasury stock is a debit balance, which is the opposite of the normal balance of an equity account.