Ask questions which are clear, concise and easy to understand.
Ask QuestionPosted by Tanya Agrawal 6 years, 11 months ago
- 1 answers
Posted by Pooja Dixit 6 years, 11 months ago
- 2 answers
Gaurav Seth 6 years, 11 months ago
When any asset is acquired by a company, the payment of purchase price may be made by the issue of shares or in cash to the vendor. When shares are issued against the purchase price, it is called ‘Issue of shares for consideration other than cash’. In other words cash is not received by the company against such shares. In this case shares are not issued to the public in general.
Such shares may be issued to the vendor either:
(i) At par or
(ii) At a discount or
(iii) At a premium.
![]()
Illustration:
(Issue of share against purchase of Assets). R.K. Ltd. purchased a building from Ravi for Rs 90,000 payable in fully paid shares of Rs 10 each.
Pass Journal Entries when:
(i) Shares are issued at par.
(ii) Shares are issued at 10% discount.
(iii) Shares are issued at 20% premium.
![]()
Posted by Diljot Singh 6 years, 11 months ago
- 1 answers
Cbse Student 6 years, 11 months ago
Posted by Riya Jain 6 years, 11 months ago
- 1 answers
Posted by Cbse Student 6 years, 11 months ago
- 4 answers
Hemant Ghritlahre 6 years, 11 months ago
Riya Jain 6 years, 11 months ago
Posted by Riya Jain 6 years, 11 months ago
- 5 answers
Tanishka Mittal 6 years, 11 months ago
Abhay Pandey 6 years, 11 months ago
Tanishka Mittal 6 years, 11 months ago
Posted by Ayush Bhatnagar 7 years ago
- 2 answers
Posted by Shagun Sandhu 7 years ago
- 1 answers
Posted by Mayank Hi 7 years ago
- 2 answers
Posted by Mayur Kamboj 7 years ago
- 1 answers
Ayush Sachan 7 years ago
Posted by Hemant Ghritlahre 7 years ago
- 6 answers
Hemant Ghritlahre 6 years, 11 months ago
Hemant Ghritlahre 6 years, 11 months ago
J K 6 years, 11 months ago
Kavita S 7 years ago
Riya Jain 7 years ago
Posted by Riya Jain 7 years ago
- 1 answers
Arshdeep Sandhu 7 years ago
Posted by Cbse Student 7 years ago
- 3 answers
Chetna Singh 6 years, 11 months ago
Posted by Aisha Singh 7 years ago
- 1 answers
Risika Nath 7 years ago
Posted by Paritosh Rai 7 years ago
- 1 answers
Posted by Yashwant Rawat 7 years ago
- 2 answers
Hemant Ghritlahre 7 years ago
Risika Nath 7 years ago
Posted by Aisha Singh 7 years ago
- 3 answers
Abhay Pandey 6 years, 11 months ago
Gaurav Seth 7 years ago
Receipts and Payments Account is a real account which is prepared following the cash basis of accounting. That is, it recognises revenue and expenses at the time of actual receipt or payment in cash. This account records Cash receipts on the debit side and cash payments on the credit side.
Depreciation being a non-cash expenses is not accounted in Receipts and Payments Account.
Posted by Harvinder Ahlawat 7 years ago
- 1 answers
Risika Nath 7 years ago
Posted by Nitkarsh Jaiswal 7 years ago
- 1 answers
Posted by Divyam Singh 7 years ago
- 1 answers
Risika Nath 7 years ago
Posted by Amarnath Ankit 7 years ago
- 1 answers
Posted by Vaishali Gupta 7 years ago
- 3 answers
Hemant Ghritlahre 7 years ago
Posted by Vaishali Gupta 7 years ago
- 3 answers
Risika Nath 7 years ago
Posted by Vaishali Gupta 7 years ago
- 1 answers
Risika Nath 7 years ago
Posted by Varun Bothra 7 years ago
- 2 answers
Gurpreet Singh 7 years ago
Posted by Varun Bothra 7 years ago
- 1 answers
Vaishali Gupta 7 years ago
Posted by Hemant Ghritlahre 7 years ago
- 0 answers
Posted by Sagar Kashyap 7 years ago
- 1 answers
Rishita Sahu 7 years ago
Posted by Harshita Malik 5 years, 8 months ago
- 1 answers
Yogita Ingle 7 years ago
Employee stock option plan is an option given by the company to its employees to subscribe to the shares of the company.
Now why the company gives option to its employee:
It will create a sense of belongingness among employees. They will feel committed towards the company. It is a kind of non cash incentive to the employee.
Why would the employee purchase the shares since he is already getting his salary?
The answer is shares are offered at a price less than the market price of share so in this employee gets a benefit. Instead of buying shares from market he is getting shares at less than market price. The price offered by company is called Exercise Price.
The difference between exercise price and market price is treated as an expense by the company.
Posted by Jitendra Kumar 7 years ago
- 1 answers
Sumit Raghav 7 years ago

myCBSEguide
Trusted by 1 Crore+ Students

Test Generator
Create papers online. It's FREE.

CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
myCBSEguide
Gaurav Seth 6 years, 11 months ago
When a company desires to borrow a considerable sum of money for its expansion, it invites the general public to subscribe to its debentures. A debenture is a certificate issued by the company acknowledging the debt due by it to its holders and is issued by means of a prospectus in the same manner as shares.
0Thank You