Rahul Limited purchased building from Handa Limited for ₹5,40,000 and the payment is to be made by the issue of shares of ₹100 each. The number of shares to be issued at premium of 20% is:

4,500 shares

The correct answer is option 2- 4,500 shares.

Building = ₹5,40,000

Shares of ₹100 each are issued at premium of 20% i.e. ₹20.
Issue price = 100 + 20 
                = 120

No of shares issued = Purchase consideration/Issue price
                             = 5,40,000/120
                             = 4,500