Answer the questions from the passage-
XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took overs 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
Given:
-
Purchase consideration = ₹3,15,000
-
Face value of each debenture = ₹100
-
Issued at par → Issue price per debenture = ₹100
Number of debentures=Purchase consideration / Issue price per debenture
= 3,15,000/ 100 = 3,150