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When shares are issued for consideration other than cash, which account is debited with the issue price of these shares?
  • a)
    Goodwill A/c
  • b)
    Share Capital A/c
  • c)
    Securities Premium A/c
  • d)
    Debenture A/c
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
When shares are issued for consideration other than cash, which accoun...
When shares are issued for consideration other than cash, such as assets or services, the issue price of these shares is normally debited to the "Goodwill A/c" to account for the value received.
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