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Journal entryAdvancedVariant — group VG.IFRS9.000002Published

Question · Extinguishment of a financial liability

Lambda SA issued a bond whose total carrying amount is 2,500,000. It buys back 40 % of it on the market for 940,000 in cash, which extinguishes that part of the liability. Record the buy-back entry.

Total carrying amount of the bond
2,500,000
Share bought back
40 %
Cash paid
940,000
Your answer
  1. Line 1

    Account Bond (extinguished part)

  2. Line 2

    Account Cash

  3. Line 3

    Account Gain on extinguishment

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