Question

DCWX Ltd. purchased a New Super Computer from a vendor for $Rs.2,20,000$. The company allotted him equity shares at a premium of $10$% instead of paying him in cash. How many equity shares will be allotted to the vendor if the company allotted the shares at $10$% discount?

• A. $24,444.44$
• B. $20,000$
• C. $22,000$
• D. $19,800$

Answer 1

The correct option is A $24,444.44$

Value of New super Computer= Rs 2,20,000

The shares are issued at discount of 10% to the vendor

Therefore ,issue price of the share= Rs10-10%

=Rs9/share.

No of shares to be issued to vendor= Rs 2,20,000/Rs9

=24,444.44 shares.