Question

a company purchased a machine for rs.180000 and in consideration issued shares at 20% premium.what will be the face shares issued
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Answer 1

Answer:

cost of machine = 180000

share issues bat 20% premium

let the face value of share be 100

then premium on share 100×20%=20

value of one share = 120

no of share issued = 180000/120

=1500

face value of share issued 1500×100

=150000

Answer 2

Explanation:

Cost of machine = 180000

Premium = 20%

Par value of share = 100

Therefore, Premium on Share = 100×20%=20

Value of one share = 100 + 20 = 120

No of shares issued = 180000/120 = 1500

Par value of share issued = 1500×100 = 150000