Swabhiman ltd. purchased assets of the book value of Rs. 1,98,000 from Alok Ltd. It was agreed that purchase consideration should be paid by issuing 11% debentures of Rs. 100 each at a premium of 10%. Find out the numbers of the debentures issued.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 1,800
When debentures are issued at a premium as purchase consideration, each debenture settles its issue price, so the number of debentures = purchase consideration ÷ issue price. The 11% rate of interest does not affect the number.
Issue price = Rs. 100 + 10% of Rs. 100 = Rs. 110
Number of debentures = Rs. 1,98,000 ÷ Rs. 110 = 1,800
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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