Read the passage carefully and answer the following questions.
XYZ Ltd is registered with an authorised capital of ₹ 20 lakh divided into 2 lakh equity shares of 10 each. The company is in manufacturing of pickles and spices. Due to the increase in demand of packed food in the market they decided to diversify its operation. For this purpose they decided to issue 1 lakh equity share of 10 each. The company issued 20,000 equity shares to a vendor to supply the machinery required to manufacture the packed food. Rest of the equity shares were issued to general public for subscription. The application were received for 46,000 equity shares. Due to undersubscription of equity shares the shares were not issued to public.

The process of issuing shares to a vendor in exchange of any asset is known as:

Issue of share for consideration other than cash

Issue of Shares for Consideration other than Cash- There are instances where a company enters into an arrangement with the vendors from whom it has purchased assets, whereby the latter agrees to accept, the payment in the form of fully paid shares of the company issued to them. Normally, no such cash is received for issue of shares. These shares can also be issued either at par, at premium or at discount, and the number of shares to be issued will depend upon the price at which the shares are issued and the amount payable to the vendor. The number of shares to be issued to the vendor will be calculated as follows:
Number of shares to be issued = Amount Payable / Issue Price
For example, Rahul Limited purchased building from Handa Limited for Rs.5,40,000 and the payment is to be made by the issue of shares of Rs.100 each. The number of shares to be issued shall be worked out as follows in different situations:
(a) When shares are issued at par, i.e., at Rs.100 then Number of shares to be issued =  Amount Payable / Issue Price  means 5,40,000 /100 = 5,400 shares
(b) When shares issued at premium of 20%, i.e., at Rs. 120 (100 + 20) Number of shares to be issued = Amount Payable/Issue Price means 5,40,000/ 120 = 4,500 shares.