Question

What is meant by the issue of shares for consideration other than cash?

Answer 1

A company may issue shares for consideration other than cash when the company acquires fixed assets such as land and buildings, machinery, etc.

Date	Particulars	L.F.	Debit ₹	Credit ₹
	(i) For purchase of asset Respective asset A/c  Dr.    To Vendor A/c		xxx	xxx
	(ii) For issue of shares Vendor  Dr.    To Equity share capital A/c    To Securities premium A/c (if issued at premium)		xxx	xxx