Rahul Limited purchased a building from Handa Limited for Rs. 5,40,000 and the payment is to be made by the issue of shares of Rs. 100 each. What will - Accountancy MCQ CUET Accountancy 2025 30 May Shift 1 2026 | ExamTest.live

easyMCQCUET Accountancy 2025 30 May Shift 12026Accountancy

1 mark

Rahul Limited purchased a building from Handa Limited for Rs. 5, 40, 000 and the payment is to be made by the issue of shares of Rs. 100 each. What will be the number of shares to be issued when shares are issued at a premium of 20% ?

Solution & Step-by-step Explanation

To compute the number of equity shares to be issued to the vendor:Purchase Consideration: Rs. 5, 40, 000 Face Value per Share: Rs. 100 Premium per Share: 20% of Rs. 100 = Rs. 20 Issue Price per Share: Issue Price = Face Value + Premium = 100 + 20 = Rs. 120 Number of Shares Issued: Number of Shares = \frac{Purchase Consideration}{Issue Price} = \frac{5 , 40 , 000}{120} = 4, 500 shares

Try it yourself before checking the explanation above.

Rahul Limited purchased a building from Handa Limited for Rs. 5, 40, 000 and the payment is to be made by the issue of shares of Rs. 100 each. What will be the number of shares to be issued when shares are issued at a premium of 20% ?

5,500 shares

5,400 shares

4,400 shares

4,500 shares

Practice with timed mock tests and track your performance across Accountancy.