A company took over assets worth ₹10,00,000 and liabilities of ₹3,00,000 of another company. Out of the purchase consideration of ₹12,00,000; ₹ 2,00,000 of the bill payable is accepted and the balance is paid by the issue of shares of ₹100 each at a 25% premium. How much amount will be credited to Securities Premium Reserve A/c?

₹2,00,000

The correct answer is option 3- ₹2,00,000.

Purchase consideration = 12,00,000
B/P accepted = 2,00,000
Balance = 12,00,000 - 2,00,000
             = ₹10,00,000

₹10,00,000  was paid through issue of shares of ₹100 each at a premium of 25% means ₹25.
Shares issued = 10,00,000/125
                       = 8,000

Securities premium = 8,000 X 25
                               = ₹2,00,000