Multiple choice

Zenith Ltd. purchased furniture from Divesh for Rs. 2,20,000. 25% of the amount due was paid by cash and balance by issuing equity shares of Rs. 10 each at 20% premium. Calculate number of shares issued to Divesh.

  1. 13750

  2. 16500

  3. 22000

  4. 18333
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Amount payable through shares = Rs.(2,20,000-55,000) = Rs. 1,65,000 Number of shares = 1,65,000/12 = 13750 shares Option (B) is incorrect. You may take 1,65,000/10. Option (C) is incorrect. You may take 2,20,000/10. Option (D) is incorrect. You may take 2,20,000/12.

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