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Proprietary Ratio

G Ltd. acquir...

Question

G Ltd. acquired assets worth Rs. $7, 50, 000$ from H Ltd. by issue of shares of Rs. $100$ at a premium of $25 %$ . The number of shares to be issued by G Ltd. to settle the purchased consideration will be _____________.

A

6, 000

shares

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B

7, 500

shares

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C

9, 375

shares

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D

5, 625

shares

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Solution

The correct option is B $6, 000$ shares
7,50,000 issues of shares of Rs. 100 at a premium of 25% = 100 +25% = 125 of premium
Issue of share of 7,50,00 /125 = 6,000 shares

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