Jindal and Company purchased a machine from High Life Machine Limited for ₹3,80,000. As per purchase agreement, ₹20,000 were paid in cash and balance by issue of shares of ₹100 each. Find the number of shares issued, if they are issued at par-
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 3,600.
Machinery value = 3,80,000
Paid in cash = 20,000
Remaining balance = 3,80,000 - 20,000
= 3,60,000
Face value of share = 100 so Issue price is 100
No of shares issued = Purchase consideration/Issue price
= 3,60,000/100
= 3,600