Question

GD Ltd. purchased assets of ₹2,50,000 from VG Ltd. GD Ltd. issued equity shares of ₹50 each at a discount of ₹10 per share fully paid in consideration. Calculate the number of shares issued.

[0.88 marks]

• A. 6,250 shares
• B. 5,000 shares
• C. 4,167 shares
• D. 25,000 shares

Answer 1

The correct option is A 6,250 shares

$\text{Number of Shares}=\frac{\text{Purchase Consideration}}{\text{Issue Price*}}$
$=\frac{₹2,50,000}{₹40}$
$=6,250\text{shares}$
* Issue Price = Nominal Price - Discount