Guidance buys back its shares for cash and cancelled the 25M shares at $1.20 per shares.
Logically the double entry is
Dr equity 30
Cr cash 30
In the answer it appears that equity and assets has increased by 30m.
Please advise.
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December sample question 4
6y ago#1Redemption has already been accounted for.
Question is asking what ratios would have been like if we ignored the effect of the share redemption.
Horrible!
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