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12500 shares, of par value Rs. 20 each, are purchased from Ram by Mohan at a price of Rs. 25 each. If Mohan further sells the shares at a premium of Rs. 11 each, find his gain in the transaction.
  • a)
    Rs. 75000
  • b)
    Rs. 70000
  • c)
    Rs. 85000
  • d)
    Rs. 65000
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
12500 shares, of par value Rs. 20 each, are purchased from Ram by Moha...
Face value of each share = Rs.20
Market value of each share = Rs.25
Number of shares = 12500
Amount required to purchase the shares = 12500 × 25 = 312500
Mohan further sells the shares at a premium of Rs. 11 each
ie, Mohan further sells the shares at Rs.(20+11) = Rs.31 per share
total amount he gets by selling all the shares = 12500 × 31 = 387500
His gain = 387500 - 312500
 = Rs.75000
 
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Most Upvoted Answer
12500 shares, of par value Rs. 20 each, are purchased from Ram by Moha...
Face value of each share = Rs.20
Market value of each share = Rs.25
Number of shares = 12500
Amount required to purchase the shares = 12500 × 25 = 312500
Mohan further sells the shares at a premium of Rs. 11 each
ie, Mohan further sells the shares at Rs.(20+11) = Rs.31 per share
total amount he gets by selling all the shares = 12500 × 31 = 387500
His gain = 387500 - 312500
 = Rs.75000
 
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Community Answer
12500 shares, of par value Rs. 20 each, are purchased from Ram by Moha...
The gain to Mohan is 12500*(11-5)=12500*6=75000.
As the premium of 5rs is already taken by Ram at the time of sale from Mohan. So 6rs premium is only taken by Mohan.So answer is a)
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12500 shares, of par value Rs. 20 each, are purchased from Ram by Mohan at a price of Rs. 25 each. If Mohan further sells the shares at a premium of Rs. 11 each, find his gain in the transaction.a)Rs. 75000b)Rs. 70000c)Rs. 85000d)Rs. 65000Correct answer is option 'A'. Can you explain this answer? for LR 2026 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about 12500 shares, of par value Rs. 20 each, are purchased from Ram by Mohan at a price of Rs. 25 each. If Mohan further sells the shares at a premium of Rs. 11 each, find his gain in the transaction.a)Rs. 75000b)Rs. 70000c)Rs. 85000d)Rs. 65000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for LR 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 12500 shares, of par value Rs. 20 each, are purchased from Ram by Mohan at a price of Rs. 25 each. If Mohan further sells the shares at a premium of Rs. 11 each, find his gain in the transaction.a)Rs. 75000b)Rs. 70000c)Rs. 85000d)Rs. 65000Correct answer is option 'A'. Can you explain this answer?.
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