R Ltd. acquired assets of ₹20 lakh and took over creditors of ₹2 lakh from Kap Enterprises. R Ltd. issued 8% debentures of ₹100 each at par as purchase consideration. How many debentures are issued for purchase consideration?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 18,000.
Purchase consideration = Assets - liabilities
= 20,00,000 - 2,00,000
= ₹18,00,000
No. of debentures issued = Purchase Consideration/ Issue Price of a Debenture
= 18,00,000/100
= 18,000