Module - 64 Shares issued to vendor for consideration other than cash

Hello students
in this lecture we are going to discuss about share issued to the vendor. basically when a company purchased a running business or any asset from a vendor then it has to paid cash but sometime company issue its share to that vendor and we have to consider the amount of goodwill or Capital Reserve which is calculated at the time of purchasing the running business. If market value of that business is more than the amount of purchase consideration then the balance amount will be known as Capital Reserve but if market value of the particular business is less than the the Purchase consideration then it will be treated as goodwill. Which is to be recorded separately.

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