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X purchased the running business of A for Rs. 60,000. In place of cash he discharged the purchase consideration by issue of equity shares of Rs. 10 each at 20% premium. Find the number of shares to be issued ?
  • a)
    6000
  • b)
    7500
  • c)
    5000
  • d)
    8000
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
X purchased the running business of A for Rs. 60,000. In place of cash...
Calculation of Purchase Consideration:
The purchase consideration is Rs. 60,000.

Calculation of Share Premium:
The shares are issued at a premium of 20%. Therefore, the share premium will be:
20% of Rs. 10 = Rs. 2
So, the issue price of each share will be Rs. 10 + Rs. 2 = Rs. 12.

Calculation of Number of Shares:
To calculate the number of shares to be issued, we need to divide the purchase consideration by the issue price per share.
Number of shares = Purchase consideration / Issue price per share
= Rs. 60,000 / Rs. 12 per share
= 5000 shares.

Therefore, the number of shares to be issued is 5000. Hence, option (c) is the correct answer.
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Community Answer
X purchased the running business of A for Rs. 60,000. In place of cash...
Purchase consideration divided by value of each equity share at 20% premium.
10*20/100= 2+10= 12 is the value of each equity shares
60000/12 = 5000
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X purchased the running business of A for Rs. 60,000. In place of cash he discharged the purchase consideration by issue of equity shares of Rs. 10 each at 20% premium. Find the number of shares to be issued ?a)6000b)7500c)5000d)8000Correct answer is option 'C'. Can you explain this answer?
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X purchased the running business of A for Rs. 60,000. In place of cash he discharged the purchase consideration by issue of equity shares of Rs. 10 each at 20% premium. Find the number of shares to be issued ?a)6000b)7500c)5000d)8000Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X purchased the running business of A for Rs. 60,000. In place of cash he discharged the purchase consideration by issue of equity shares of Rs. 10 each at 20% premium. Find the number of shares to be issued ?a)6000b)7500c)5000d)8000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X purchased the running business of A for Rs. 60,000. In place of cash he discharged the purchase consideration by issue of equity shares of Rs. 10 each at 20% premium. Find the number of shares to be issued ?a)6000b)7500c)5000d)8000Correct answer is option 'C'. Can you explain this answer?.
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