The Paid-in Capital, Treasury Stock account can have a zero or credit balance.

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The Paid-in Capital, Treasury Stock account can have a zero or credit balance depending on the activity in the account. If a company repurchases its own shares of stock and holds them as treasury stock, the cost of those shares will be debited to the treasury stock account, which will result in a debit balance. However, if the company subsequently sells those treasury shares for more than their cost, the resulting gain will be credited to the account, which could lead to a zero or even a credit balance. Alternatively, if a company issues new shares of stock and receives cash in excess of the par value of the stock, the excess amount will be credited to the Paid-in Capital, Treasury Stock account, which could also result in a credit balance.

The Paid-In Capital, Treasury Stock Account Can Have a Zero