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Read the following information and answer the given questions:
Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.
How many shares did the Pinnacle Instruments Ltd. registered itself with?
  • a)
    5,000
  • b)
    15,000
  • c)
    20,000
  • d)
    Can't be determined.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Read the following information and answer the given questions:Pinnacl...
20,00,000 ÷ 100 = 20,000
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Most Upvoted Answer
Read the following information and answer the given questions:Pinnacl...
Understanding Pinnacle Instruments Ltd. Share Capital
Pinnacle Instruments Ltd. registered a capital of ₹20,00,000 divided into Equity Shares of ₹100 each. To determine the total number of shares registered, we need to divide the total capital by the nominal value of each share.
Calculation of Total Shares
- Total Capital: ₹20,00,000
- Nominal Value per Share: ₹100
- Total Number of Shares:
- Total Capital / Nominal Value per Share
- = ₹20,00,000 / ₹100
- = 20,000 shares
Details of Share Issuance
- On 1st June 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals as consideration for plant and machinery.
- The remaining shares were issued to the public at par, which means the company offered these shares at their nominal value of ₹100.
Public Shares Issued
- After issuing 5,000 shares to Mila Herbals, the remaining shares available for public issuance would be:
- Total Shares - Shares Issued to Mila Herbals
- = 20,000 - 5,000
- = 15,000 shares
Conclusion
Thus, the total number of shares Pinnacle Instruments Ltd. registered itself with is 20,000 shares. The answer to the question is option C.
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Read the following information and answer the given questions:Pinnacle Instruments Ltd. registered itself with a capital of ₹ 20,00,000 divided into Equity Shares of ₹100 each. On 1st June, 2015, the company issued 5,000 Equity Shares as fully paid to Mila Herbals, as purchase consideration for the purchase of plant and machinery. The remaining shares were issued to the public at par. Till the date of the Balance Sheet, the directors had called from the public, 60% of the nominal value of the shares. The amount called was received by the company.How many shares did the Pinnacle Instruments Ltd. registered itself with?a)5,000b)15,000c)20,000d)Can't be determined.Correct answer is option 'C'. Can you explain this answer?
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