TL Ltd. purchased assets of a book value of ₹99,000 from another firm. The purchase consideration was to be paid by issuing 11% Debentures of ₹100 each at a discount of 10%. The number of Debentures the company needs to issue will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 1,100
The purchase consideration of Rs. 99,000 is paid in debentures issued at their issue price.
Issue price = 100 − 10% discount = Rs. 90
Number of debentures = 99,000 ÷ 90 = 1,100
The discount of 1,100 × Rs. 10 = Rs. 11,000 is debited to Discount on Issue of Debentures Account.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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