Jindal and Company purchased a machine from High Life Machine Limited for Rs. 3,80,000. As per purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs. 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) → 3600 Shares
When shares are issued to a vendor, the number of shares is the amount payable in shares divided by the issue price; at par, the issue price is the face value.
Amount payable in shares = Rs. 3,80,000 − Rs. 20,000 = Rs. 3,60,000
Number of shares = Rs. 3,60,000 / Rs. 100 = 3,600 shares
NCERT (2026-27 edition):
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