Question

X Ltd. purchased an automatic bottling machine from a vendor for $Rs.1,65,000$. The company allotted him equity shares at a premium of $10$% instead of paying him in cash. The vendor will be allotted _______ equity shares of $Rs.10$ each.

• A. $15,000$
• B. $16,500$
• C. $13,500$
• D. $16,000$

Answer 1

The correct option is A $15,000$

Value of asset purchased= Rs 1,65,000

Equity shares are to be issued at premium of 10%

therefore, issue price of shares=Rs10+10%

=Rs11/share.

No. of shares to be issued=Rs 1,65,000/Rs11

=15,000 shares.