Jindal and Company purchased a machine from High Life Machine Limited for Rs.3,80,000. As per purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. Find the number of shares issued, if they are issued at par:
Jindal and Company purchased a machine from High Life Machine Limited for Rs.3,80,000. As per purchase agreement, Rs. 20,000 were paid in cash and balance by issue of shares of Rs.100 each. Find the number of shares issued, if they are issued at par:
Solution
✅ Correct Option: 3
Given Information:
- Total cost of machine = Rs. 3,80,000
- Cash paid = Rs. 20,000
- Balance paid by issue of shares
- Face value of shares = Rs. 100 each
- Shares issued at par (at face value)
Balance amount to be paid through shares:
Balance = Total cost - Cash paid
Balance = Rs. 3,80,000 - Rs. 20,000 = Rs. 3,60,000
When shares are issued at par, it means they are issued at their face value without any premium or discount.
Number of shares issued =
Number of shares = = 3,600 shares
Correct Option: 3
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