The number of shares to be issued to a vendor for consideration other than cash is calculated as follows:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Amount Payable / Issue Price
When a company pays a vendor for assets by issuing fully paid shares, the number of shares depends on the amount payable to the vendor and the price at which each share is issued (par, premium or discount). For example, Rs. 5,40,000 payable and shares issued at Rs. 12 give 45,000 shares.
NCERT (2026-27 edition):
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