Romi Ltd purchased building worth ₹1,50,000, machinery ₹1,40,000 and furniture worth ₹10,000 from xyz co. and took over its liabilities of ₹20,000 for a purchase consideration of ₹3,15,000. They paid the purchase consideration by issuing 12% debentures of ₹100 each at a premium of 5%.
What will be the number of debentures issued by Romi Ltd?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 3,000
The number of debentures depends only on the purchase consideration and the issue price of each debenture.
Issue price = ₹100 + 5% premium = ₹105
Number of debentures = ₹3,15,000 ÷ ₹105 = 3,000
The net assets taken over are ₹1,50,000 + ₹1,40,000 + ₹10,000 − ₹20,000 = ₹2,80,000; the extra ₹35,000 paid over the net assets is goodwill. Dividing by the face value of ₹100 instead of the issue price would give 3,150, which is wrong because each debenture settles ₹105 of the consideration.
NCERT (2026-27 edition):
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