Rahul Limited purchased 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. The number - Accountancy MCQ CUET Accountancy 2025 14 May Shift 1 2026 | ExamTest.live

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Rahul Limited purchased 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. The number of shares to be issued at premium of 20% is:

Solution & Step-by-step Explanation

1. Determine Issue Price per Share: Face Value = Rs. 100 Premium = 20% of 100 = Rs. 20 Issue Price = 100 + 20 = Rs. 120 2. Calculate Total Number of Shares to Issue: Number of Shares = \frac{Purchase Consideration}{Issue Price per Share} Number of Shares = \frac{5 , 40 , 000}{120} = 4, 500 shares

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Rahul Limited purchased 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. The number of shares to be issued at premium of 20% is:

5,400 shares

4,500 shares

6,000 shares

5,200 shares

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