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Company Accounts – Issue of Shares — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyCompany Accounts – Issue of Shares2 Marks
Question
Shares are issued for cash only.
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Answer

This statement is False.
The company issues shares for cash and also for consideration other than cash. Shares are issued by the company to the vendor for the purchase of land, machinery, etc. In such cases, money is not paid, but shares are issued by the company for value received.

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