Aryan Ltd took over assets worth Rs. 30,00,000 and liabilities of Rs. 9,00,000 for a purchase consideration of Rs. 36,00,000, which was paid as follows: For Rs. 6,00,000 bills were accepted and remaining was paid by issuing shares of Rs. 100 each at a premium of 25%. Find the amount which will be credited to securities premium account?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 6,00,000
When shares are issued to the seller as part of the price, the number of shares = amount payable in shares ÷ issue price, and the premium on those shares is credited to Securities Premium.
Purchase consideration = Rs. 36,00,000
Paid by bills = Rs. 6,00,000
Amount paid in shares = Rs. 30,00,000
Issue price = Rs. 100 + 25% premium = Rs. 125 per share
Number of shares = Rs. 30,00,000 ÷ Rs. 125 = 24,000
Securities premium = 24,000 × Rs. 25 = Rs. 6,00,000
The assets and liabilities taken over (net assets of Rs. 21,00,000) decide only the goodwill of Rs. 15,00,000; they do not enter the premium.
Shortcut: the premium is 25 out of every 125 of the issue price, which is 1/5. One fifth of Rs. 30,00,000 is Rs. 6,00,000.
NCERT (2026-27 edition):
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