Company Accounts

Share Capital

Easy

common

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

5000 shares

6000 shares

10000 shares

60000 shares

✅ Correct Option: 1

Face value of each share = Rs 100

Premium = 20% of Rs 100 = Rs 20

Issue price per share = Face value + Premium

Issue price per share = Rs 100 + Rs 20 = Rs 120

Total payment to be made for building = Rs 6,00,000

Number of shares to be issued = $\frac{\text{Total Payment}}{\text{Issue Price per Share}}$

Number of shares = $\frac{6,00,000}{120}$ = 5,000 shares

The building worth Rs 6,00,000 will be acquired by issuing 5,000 shares at Rs 120 each (Rs 100 as face value + Rs 20 as premium). This satisfies the total consideration amount.

2025: 14 May Shift 1

Rohan to whom 600 shares were allotted must have applied for:

2025: 14 May Shift 1

A company failed to receive Rs 2,00,000 on First and final Call. Interest on calls in arrears is charged according to 'Table F' at:

2025: 26 May Shift 2

Sahil, a share holder, failed to pay the money for second and final call of Rs. 20 on 1,000 shares issued to him at Rs. 120 (face value of Rs. 100 per share). His shares were forfeited after the second and final call. Which is correct about share forfeiture:

2025: 22 May Shift 2

Which company must have at least two members?

2025: 4 June Shift 2

Preference Shares are defined under section ________ of the Companies Act, 2013.

2026: 31 May Shift 1

Which of the following statements are correct in respect of share capital?

A. Share application money received in excess is adjusted towards allotment.

B. Calls in advance is shown under share capital

C. Securities premium can be used to issue fully paid bonus shares

D. Share forfeiture account is a capital gain

Choose the correct answer from the options given below:

R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%. Calculate the number of shares to be issued.

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