Jain and Co. purchased a machine from Young Life Machine Limited for Rs.3,80,000. As per the purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. How many shares are issued if the shares are issued at 20% premium.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 3000
When shares are issued to a vendor for an asset, number of shares = amount payable ÷ issue price. At a 20% premium, a Rs. 100 share is issued at Rs. 120.
Amount payable by shares = Rs. 3,80,000 − Rs. 20,000 paid in cash = Rs. 3,60,000
Issue price = Rs. 100 + 20% premium = Rs. 120
Number of shares = Rs. 3,60,000 ÷ Rs. 120 = 3,000 shares
Dividing by the face value (Rs. 100) gives 3,600, the figure for an issue at par.
NCERT (2026-27 edition):
|
