Question

Paras Ltd. purchased assets of 7,50,000 from H Ltd. by issue of shares of ₹ 100 each at a premium of 25%. The number of shares to be issued by Pawan Ltd. as purchase consideration will be ______.

Options

• 6,000 shares.

• 7,500 shares.

• 9,375 shares.

• 5,625 shares.

Answer 1

6,000 shares.

Explanation:

Issue price of each share:

₹ 100 + 25% of ₹ 100 = ₹ 125

Number of shares issued:

₹ 7,50,000 ÷ ₹ 125 = 6,000 shares​