Wednesday, 10 December 2014

Example of share based payment for inventory

Example of share based payment for inventory

Goods are measured at the fair value and not at the fair value of instrument.

Example of inventory Share based payment

Ahmed and company purchase some bags from the market at $ 20,000. Ahmed issued 2000 shares at price of $ 5 each. What is accounting treatment of this transaction?


Date
Particulars
Dr.
Cr.

Goods and Inventory  A/C
             20,000


    Equity A/C

            10,000

    Share Premium A/C

            10,000

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