Question

Raj Ltd. purchased a machine from Anuj Tech Ltd. for Rs.1,90,000. As per purchase agreement, Rs. 10,000 were paid in cash and balance by issue of shares of Rs.100 each. Find the number of shares issued to Anuj Tech Ltd., if the shares issued at 20% premium.

• A. 3,000
• B. 2,000
• C. 1,500
• D. 1,000

Hint:

Shares pay for Rs. 1,80,000. Each share is issued at Rs. 120. Divide.

Answer 1

The Correct Option is C

Step 1: Set up an equation:
Let $n$ be the number of shares issued. Each share brings in Rs. 120 of value (Rs. 100 face value plus 20% premium, which is Rs. 20). The cash part of the price is Rs. 10,000, and the shares cover the rest.

Step 2: Write the balance:
Total price equals cash plus value of shares: \[ 1{,}90{,}000 = 10{,}000 + 120\,n \]

Step 3: Solve for n:
Move 10,000 to the left side: \[ 120\,n = 1{,}80{,}000 \] Divide by 120: \[ n = 1{,}500 \]

Step 4: Check by substitution:
Face value of 1,500 shares is $1500 \times 100 = 1{,}50{,}000$. Premium is $1500 \times 20 = 30{,}000$. Together this is Rs. 1,80,000, and adding the cash of Rs. 10,000 gives Rs. 1,90,000, which matches the machine price.

Final Answer:
Anuj Tech Ltd. receives 1,500 shares, option 3. \[\boxed{n = 1500}\]