Company Accounts

Share Capital

Easy

Rahul Limited purchased building from Handa Limited for Rs.5,40,000 and the payment is to be made by the issue of shares of Rs.100 each. The number of shares to be issued at premium of 20% is:

5,400 shares

4,500 shares

6,000 shares

5,200 shares

✅ Correct Option: 2

Given information:

Purchase price of building = Rs. 5,40,000
Face value per share = Rs. 100
Premium = 20%

When shares are issued at a premium of 20%, the issue price per share needs to be calculated:

Premium per share = 20% of Rs. 100 = Rs. 20

Issue price per share = Face value + Premium

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

To find the number of shares to be issued:

Number of shares = $\frac{\text{Total consideration (Purchase price)}}{\text{Issue price per share}}$

Number of shares = $\frac{5,40,000}{120}$ = 4,500 shares

The company will issue 4,500 shares at Rs. 120 per share (Rs. 100 face value + Rs. 20 premium) to pay for the building worth Rs. 5,40,000.

2026: 19 May Shift 1

Which of the following is not a feature of a private company ?

2026: 29 May Shift 1

In case a company issued shares of face value Rs 100 in consideration of a building purchased for Rs 10,80,000, at the following issue prices. Match List-I with List-II.

List-I (Issue price of share)	List-II (No. Of shares to be issued)
(A) Rs. 120	(I) 7,200
(B) Rs. 90	(II) 8,640
(C) Rs. 125	(III) 12,000
(D) Rs. 150	(IV) 9,000

Choose the correct answer from the options given below:

2026: 21 May Shift 2

At the time of forfeiture of shares, the company

2026: 11 May Shift 1

Which of the following is true in relation to a company and the issue of shares ?

A. A company is an artificial person with separate legal entity, perpetual succession and a common seal.

B. Share calls are to be made as per the provisions of the articles of association.

C. Minimum subscription of 75% is must for issue of shares.

D. The procedure for accounting for the issue of both equity and preference shares is the same. To differentiate between the two, the words 'Equity' and 'Preference' is prefixed to each and every instalment.

Choose the correct answer from the options given below:

2025: 16 May Shift 1

What is the amount of discount per share which is allowed by the company at the time of reissue of forfeited shares?

2025: 16 May Shift 1

When a company does not have its own articles of association, provisions of which table will apply:

Rahul Limited purchased building from Handa Limited for Rs.5,40,000 and the payment is to be made by the issue of shares of Rs.100 each. The number of shares to be issued at premium of 20% is:

Solution

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