Question:
A company purchased machinery for ₹18,00,000 and in consideration issued shares at 20% premium. What will be the face value of shares issued?
A company purchased machinery for ₹18,00,000 and in consideration issued shares at 20% premium. What will be the face value of shares issued?
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Issue at premium means: Issue Price = Face Value + Premium.
Updated On: Feb 16, 2026
- ₹21,60,000
- ₹18,00,000
- ₹14,40,000
- ₹15,00,000
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The Correct Option is D
Solution and Explanation
Shares are issued at 20% premium, therefore the issue price is 120% of face value.
\[
\text{Face Value} = \frac{18,00,000 \times 100}{120} = ₹15,00,000
\]
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