Question

a plant costing Rs.4,50,000 is purchased and payment was made by issue of shares of Rs.100 each at at premium of 20%. the securities premium reserve account will be

Answer 1

Given :

A plant costing Rs.4,50,000 is purchased and payment was made by issue of shares of Rs.100 each at at premium of 20%.

• Purchase consideration = Rs.450000
• Share issue price = Rs.100 each
• Premium rate = 20%

The given question is from accounting of shares

Now calculate number shares issued

→ Purchase consideration/issue price of share + securities premium amount

→ 450000/120

→ 3750 shares

The amount will go in securities premium reserve is (3750 × 20) Rs.75000

• Here is calculation :-

Premium rate = 20%

→ 20% of issue share price

→ 20/100 × 100

→ Rs.20

Answer 2

Answer:

Given :-

• A plant costing Rs.4,50,000 is purchased and payment was made by issue of shares of Rs.100 each at at premium of 20%.

Find Out :-

• The securities premium reserve account.

Solution :-

⦿ Numbers of Shares :

➙ Number of Shares = $\sf \dfrac{450000}{100 + 20}$

➙ Numbers of Shares = $\sf \dfrac{450000}{120}$

➙ Numbers of Shares = 3750 Shares

⦿ Total Amount :

➔ Total Amount = 3750 × 20

➔ Total Amount = 75000

⦿ The securities premium reserve account :

➲ 20% × Issue Share price

➲ 20/100 × 100

➲ Rs 20