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 bal - Accountancy MCQ CUET Accountancy 2025 30 May Shift 2 2026 | ExamTest.live

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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?

Solution & Step-by-step Explanation

Total Purchase Consideration = Rs. 3,80,000Amount paid in cash = Rs. 20,000Remaining balance to be settled via shares: Balance Amount = 3, 80, 000 - 20, 000 = Rs. 3, 60, 000 Issue price per share including 20% premium: Issue Price = Face Value + Premium = 100 + (100 \times \frac{20}{100}) = 100 + 20 = Rs. 120 Number of shares to be issued: Number of Shares = \frac{Balance Amount}{Issue Price} = \frac{3 , 60 , 000}{120} = 3, 000 shares

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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?

3600

3200

3000

3800

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