Answer the questions from the passage-
XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took over its liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. XYZ Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each at a premium of 5%.
How many debentures would be issued, if debentures were issued at par?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 3,150
At par, the issue price of a debenture equals its face value, so the whole purchase consideration is divided by Rs 100.
Issue price at par = Rs 100
Number of debentures = Rs 3,15,000 ÷ Rs 100 = 3,150
With no premium, the full Rs 3,15,000 is credited to 12% Debentures Account. Fewer debentures (3,000) are needed only when each one is issued at a premium of 5% and so settles Rs 105 of the debt.
NCERT (2026-27 edition):
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