R Ltd purchased a building from X Infra for Rs 6,00,000 and the payment is to be made by the issue of shares for Rs 100 each at a premium of 20%.…

The building is purchased for Rs 6,00,000, and the payment will be made through issuing shares.

Finding the Issue Price per Share:

Face Value of each share = Rs 100
Premium = 20% of Rs 100 = Rs 20

Issue Price per share = Face Value + Premium
Issue Price = Rs 100 + Rs 20 = Rs 120

---

Calculating Number of Shares:

Using the formula: Number of Shares = $\frac{\text{Total Consideration}}{\text{Issue Price per Share}}$Issue Price per ShareTotal Consideration​

Number of Shares = $\frac{6,00,000}{120}$1206,00,000​ = 5,000 shares

When shares are issued at a premium, the company receives the full issue price (face value + premium) for each share. Since the total payment required is Rs 6,00,000 and each share brings in Rs 120, dividing gives us 5,000 shares.

Correct Option: 1 (5000 shares)