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Question : The law permits a Company to offer 2,00,000 shares for sale for Rs.2 per share. The general public purchased three-quarters (3/4) of these shares. How much issued share capital is there?

Option 1: 4,00,000

Option 2: 5,00,000

Option 3: 1,00,000

Option 4: 3,00,000


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: 3,00,000


Solution : If a company is allowed by law to sell 2,00,000 shares at Rs.2.00 each, then the total Authorised Share Capital will be Rs.2,00,000*2 = Rs.4,00,000. Out of this Rs.4,00,000, 3/4th was bought by the general public, So the Issued share capital will be  400000*3/4 = Rs.3,00,000.

Hence, the correct answer is option 4.

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