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State, Whether the Following Statements is True Or False. - Book Keeping and Accountancy

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Question

State, whether the following statements is True or False.
Shares are issued for cash only.

Options

  • True

  • False

MCQ
True or False
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Solution

False
Explanation:
 Shares can be issued for cash or for consideration other than cash. Sometimes shares are issued to vendors against purchase of assets. Also, shares are issued to the promoters of a company for setting up the company.

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Chapter 10: Company Accounts Part - 1 (Accounting for Shares) - Exercise 4 [Page 351]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 10 Company Accounts Part - 1 (Accounting for Shares)
Exercise 4 | Q 12 | Page 351
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