Blue Prints Ltd., purchased building worth Rs.1,50,000, machinery worth Rs.1,40,000 and furniture worth Rs.10,000 from XYZ Co., and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. Blue Prints Ltd., paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 5%. Number of debentures issued are-
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 3,000
When debentures are issued to a vendor for a purchase consideration, the number of debentures = purchase consideration ÷ issue price of one debenture. The net assets only decide goodwill or capital reserve, not the number of debentures.
Net assets = Rs. 1,50,000 + Rs. 1,40,000 + Rs. 10,000 − Rs. 20,000 = Rs. 2,80,000
Purchase consideration Rs. 3,15,000 > net assets, so goodwill = Rs. 35,000
Issue price = Rs. 100 + 5% premium = Rs. 105
Number of debentures = Rs. 3,15,000 ÷ Rs. 105 = 3,000
NCERT (2026-27 edition):
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