Picus - Limited purchases a machine worth Rs.1,15,000 from Indigo Traders. Payment was made as Rs. 10,000 by cheque and the remaining by issue of 10,000 equity shares of the face value of Rs. 10 each fully paid-up at an issue price of Rs.10.50 each. Amount of share premium would be:

Rs. 5,000

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Rs. 6,000

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Rs. 7,000

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Rs. 4,000

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Solution

The correct option is C Rs. 5,000
b'Machine worth Rs. 1,15,000 from Indigo Traders Payment was made as Rs. 10,000 [1,15,000 -10,000 = 105,000]
10,000 equity shares of the face value of Rs. 10 each [10,000 x 10 = 100,000]
105,000 -100,000 =5,000.
'

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Picus - Limited purchases a machine worth Rs.1,15,000 from Indigo Traders. Payment was made as Rs. 10,000 by cheque and the remaining by issue of 10,000 equity shares of the face value of Rs. 10 each fully paid-up at an issue price of Rs.10.50 each. Amount of share premium would be:

The correct option is C Rs. 5,000b'Machine worth Rs. 1,15,000 from Indigo Traders Payment was made as Rs. 10,000 [1,15,000 -10,000 = 105,000]10,000 equity shares of the face value of Rs. 10 each [10,000 x 10 = 100,000] 105,000 -100,000 =5,000.'

The correct option is C Rs. 5,000
b'Machine worth Rs. 1,15,000 from Indigo Traders Payment was made as Rs. 10,000 [1,15,000 -10,000 = 105,000]
10,000 equity shares of the face value of Rs. 10 each [10,000 x 10 = 100,000]
105,000 -100,000 =5,000.
'