Comprehension Passage
Mithas Limited was formed with a share capital of Rs. 50,00,000 divided into 50,000 shares of Rs. 100 each. 9,000 shares were issued to the vendor as fully paid for a purchase consideration of the furniture acquired. 30,000 shares were allotted in payment of cash on which Rs. 70 per share was called and paid.
For what purpose were 9,000 shares issued by Mithas Limited?
1
As an investment
2
For repayment of loan
3
For purchase consideration of furniture
4
For cash reserves