Question

Sumo Ltd. purchased plant and machinery for ₹3,60,000 for which it is paying by issue of shares of ₹100 each at 20% premium. How many shares will be issued as consideration?

[0.88 marks]

• A. 3,600 shares
• B. 3,000 shares
• C. 4,500 shares
• D. 6,000 shares

Answer 1

The correct option is B 3,000 shares

$\text{Number of shares}=\frac{\text{Purchase Consideration}}{\text{Issue Price}}$

$=\frac{₹3,60,000}{₹{120}^{\ast }}$
$=3,000\text{shares}$
$\text{*Issue Price}=₹100+20\text{\%}=₹120$