Practicing Success
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| A company purchased a plant and issued fully paid-up equity shares for consideration other than cash. These shares will be shown in notes to accounts to share capital as: |
Issued capital Subscribed but not fully paid Forfeited shares Subscribed and fully paid |
| Subscribed and fully paid |
| A company generally buys the assets for the business for cash or on credit. Also, it usually issues shares for cash. But, in some cases, it may choose to buy the assets in exchange for shares. It may offer fully paid equity shares to the vendor for the value of the assets. Therefore, these shares are shown as subscribed and full paid-up capital. |
