A company purchased machinery for Rs 1 80 000 and in consideration issued shares at 20 premium What ...........

General Accounting Principles Accounting for Shares

A company purchased machinery for Rs.1,80,000 and in consideration issued shares at 20% premium. What will be the face value of shares issued :

Rs.1,50,000

Rs.1,44,000

Rs.1,80,000

Rs.2,16,000

RS.1,50,000

purchase consideration= Rs. 180000 (18000shares of 10each)

issued shares at 20% premium(10+2premium)

face value= 180000/12(share price)=15000shares

15000*10=Rs150000

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