JK Limited purchased building from Sumit Ltd. for Rs. 6,60,000 and the payment is to be made by the issue of shares of Rs. 100 each at a premium of Rs. 20. The number of shares to be issued to Sumit Ltd. will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 5,500
When shares are issued to a vendor, the number of shares = purchase consideration ÷ issue price, and the issue price includes the premium.
Issue price per share = Rs. 100 + Rs. 20 = Rs. 120
Number of shares = Rs. 6,60,000 ÷ Rs. 120 = 5,500
The check: share capital = 5,500 × Rs. 100 = Rs. 5,50,000, and securities premium = 5,500 × Rs. 20 = Rs. 1,10,000, together Rs. 6,60,000. Dividing by the face value of Rs. 100 alone would give 6,600 shares and leave out the premium.
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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