Question : XYZ Ltd took over business of ABC Ltd. and paid for it by issue of 60,000, Equity Shares of Rs. 100 each at a par along with 6% Preference Shares of Rs. 1,00,00,000 at a premium of 5% and a cheque of Rs. 8,00,000.
Option 1: Rs. 1,68,00,000
Option 2: Rs. 1,73,00,000
Option 3: Rs. 1,40,00,000
Option 4: Rs. 1,60,00,000
Correct Answer: Rs. 1,73,00,000
Solution : Answer = Rs. 1,73,00,000
Amount of Purchase Consideration will be
Equity share capital = 60,00,000
(60,000 shares @ 100 each)
6% preference
Share Capital = 1,00,00,000 + 5,00,000
= 105,00,000
Bank = 8,00,000
Total Purchase = 1,73,00,000 Hence, the correct option is 2.
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