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Question
Newfound Ltd took over business of Old land ltd and paid for it by issue of 30,000, Equity Shares of ₹100 each at a par along with 6% Preference Shares of ₹1,00,00,000 at a premium of 5% and a cheque of ₹8,00,000. What was the total agreed purchase consideration payable to Old Land ltd.
Options
₹1,05,00,000
₹1,43,00,000
₹1,40,00,000
₹1,35,00,000
MCQ
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Solution
₹1,43,00,000
Explanation:
Equity Shares Issued 30,000 shares of ₹100 each at par = ₹30,00,000
Preference Shares Issued 6% Preference Shares of ₹1,00,00,000 issued at 5% premium
= ₹1,00,00,000 + (5% of 1,00,00,000)
= ₹1,00,00,000 + ₹5,00,000
= ₹1,05,00,000
Cash Payment = ₹8,00,000
Total Purchase Consideration
= 30,00,000 + 1,05,00,000 + 8,00,000
= ₹1,43,00,000
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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.201]
