Issue of Shares and Debentures for Consideration Other Than Cash

The video tutorial explains the accounting treatment for issuing shares or debentures for non-cash consideration, using a case study of X Limited and Z Limited. It covers the journal entries required for such transactions, including scenarios involving capital reserves and discounted issuance. The session concludes by affirming that the accounting treatment remains consistent whether shares or debentures are issued.

What is the significance of capital reserve in accounting?

Describe the journal entries required when X Limited issues shares to Z Limited.

What would change in the accounting treatment if debentures were issued instead of shares?