What are the double entries for shares which have been issued by a private limited company as a gift at a value determined by the directors. I can see that one side of the entry is CR share capial with the value but what account is debited.

There are quite a few items that need clarification:

1. What is the nature of the gift?
2. Is the company authorized by its articles to issue such shares?
3. Is it possible to put a value on the gift?

This is rather an unusual situation. Legally speaking the transaction is not complete without a consideration and that would make the issue of shares an ultra vires act on the part of the Board of Directors and the Company.

There must be some specific reason for granting a gift. This situation can be clarified only if the circumstances leading to the grant of the gift are available.

It may appear that the gift was granted where someone performed a work for the company for which there was no specific contract. The company or the board might have been pleased with the outcome of the work performed and decided to remunerate the person by issue of shares.

In any case this is a capital transaction and can not be charged to income but the value must be ascertained first supported by a board reslution in accordance with the terms of articles.

You are correct in that the shares were given in lieu of work undertaken. It is not ultra vires as far as I know. What are the bookkeeping entries?

What was the nature of work undertaken?

If the work related to organization of a newly formed company it will be treated as organization costs.

The account to be debited will depend on the circumstances of the case.

Again, there will be the question of value to be assigned to the transaction. The general rule is the fair value of benefit received or the fair value of benefit given, whichever is easily determinable.