Accountancy Part AIssue and Redemption of Debentures

X Ltd. purchased assets of ₹6,30,000 from Y Ltd. X Ltd. issued 9% Deb…

X Ltd. purchased assets of ₹6,30,000 from Y Ltd. X Ltd. issued 9% Debentures of ₹100 each fully paid in consideration. Calculate number of Debentures to be issued if debentures are issued at 20% premium.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 5,250

Issue price of one debenture = ₹100 + 20% premium = ₹120

Number of debentures = Purchase consideration / issue price

= ₹6,30,000 / ₹120 = 5,250

NCERT (2026-27 edition):
Numerical Questions – “… 9. Kumar Ltd. purchased assets of Rs.6,30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of Rs.100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par, and (b) at premium of 20%.”