wiz-icon
MyQuestionIcon
MyQuestionIcon
6
You visited us 6 times! Enjoying our articles? Unlock Full Access!
Question

A Ltd. Acquired assets worth Rs. 11,25,000 from B. Ltd. by issue of equality shares of Rs. 100 at premium of 25%. The number of shares to be issued by A Ltd, for the purchase consideration.

A
9000 shares
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
11250 shares
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
14063 shares
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
7500 shares
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A 9000 shares
The equity shares benefits a company with issue of such as purchase consideration, that is, purchase of assets.
MarketValueofshare=Facevalue+Premium
Substitute values in the above equation
MarketValueofshare=Rs100+Rs25=Rs125

Numberofshares=PurchasevalueMarketvalueofshare
Substitute values in the above equation
Numberofshare=Rs11,25,000Rs125=9,000shares.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Finding Discounts
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon