question archive Girolle has the following equity balances: Question 1 Not yet answered Marked out of 1
Girolle has the following equity balances: Question 1 Not yet answered Marked out of 1
Subject:AccountingPrice: Bought3
Girolle has the following equity balances: Question 1 Not yet answered Marked out of 1.00 Ordinary share capital, £1 nominal value 400,000 Share premium 400,000 Retained earnings 500,000 Flag question It buys back 50,000 of its ordinary shares at the market value of £5 each. It intends to hold the shares and re-issue them in the future. Which of the following is the correct treatment? O a. Share capital is not adjusted and a separate line is shown in equity at -£250,000 O b. Share capital is reduced by £50,000 and share premium is reduced by £200,000 Oc Share capital is reduced by £250,000 Od. Share capital is not adjusted and a separate line is shown in equity at -£50,000
