Arrange the following in the sequence when shares are issued for consideration other than cash in the books of purchaser:
(A) Share capital is credited for shares issued to vendor
(B) Assets acquired are debited
(C) Vendor's Account credited with purchase price
(D) Vendor's Account debited with issue of shares
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (B), (C), (D), (A)
The purchase is recorded first, and the payment by issue of shares second:
(B) Assets acquired are debited
(C) Vendor’s Account credited with purchase price
(D) Vendor’s Account debited with issue of shares
(A) Share capital is credited for shares issued to vendor
NCERT (2026-27 edition):
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