Multiple Choice Questions on Company purchased a Building for Rs 12 00 000 out of which Rs 2 00 000 were paid in cash Balance amo........... for UPSC EPFO Exam Preparation

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Multiple Choice Questions

Company purchased a Building for Rs 12 00 000 out of which Rs 2 00 000 were paid in cash Balance amo...........

General Accounting Principles Accounting for Shares
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    Company purchased a Building for Rs.12,00,000 out of which Rs.2,00,000 were paid in cash. Balance amount was paid by issue of equity shares of RS.10 each at 25% premium. How many shares will be issued by the Company :

    1,00,000 Shares

    Incorrect Answer

    80,000 Shares

    Correct Answer

    1,20,000 Shares

    Incorrect Answer

    96,000 Shares

    Incorrect Answer
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    Explanation:

    BUILDING PURCHASE= RS.12,00,000 (AT RS. 10 PER SHARE+ 25% PREMIUM=12.5 PER SHARE)

                                CASH=RS.2,00,000

           12,00,000-2,00,000=10,00,000

    NO. OF SHARES ISSUED= PURCHSE COSIDERATION/ISSUED PRICE,00 OF A SHARE

                                              =RS.10,00,000/12.5=80,000 SHARES (ANSWER)

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    Arvind Yadav

    writing error , premium is 25% and not 20%

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