Question

2. A Company purchased a Building for $12,00,000 out of which 22,00,000
were paid in cash. Balance amount was paid by issue of equity shares of 10
each at 25% premium. How many shares will be issued by the Company?
(A) 1,00,000 Shares
(R) 80,000 Shares
(C) 1,20,000 Shares
(D) 96,000 Shares​

Answer 1

Answer:

80,000 shares

Explanation:

10,00,000/12.5 = 80,000

Answer 2

Question :-

A Company purchased a Building for $12,00,000 out of which 2,00,000 were paid in cash. Balance amount was paid by issue of equity shares of 10 each at 25% premium. How many shares will be issued by the Company?

Answer :-

(B) 80,000 shares

Number of equity shares to be issued

$= \frac{200000}{25} \times 10 \\ = \frac{2000000}{25} \\ = \frac{1000000}{12.5} \\ = 80000 \: shares$