Read the following information carefully and answer the question.

A Limited took over assets of ₹3,00,000 and liabilities of ₹10,000 from X and co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by issue of 10% debentures of 100 each at a premium of 20%. The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of 100 each as collateral security. The rate of Interest on loan is 12% p.a.

Calculate the amount of fixed obligation of the company.

₹1,42,500

The correct answer is option 3- ₹1,42,500.

Fixed obligation means interest payment.

* Interest on loan = 10,00,000 x 12/100
                        = 1,20,000

Debentures amount = No of debentures Face value
                              = 2,250 x 100
                             = 2,25,000

Issue price = 100 + 20% of 100 (securities premium)
                = 100 + 20
                = 120

No of debentures = Purchase consideration / issue price
                         = 2,70,000/120
                         = 2,250

* Interest on debentures = 2,25,000 x 10/100
                                  = 22,500

Total fixed obligation = 1,20,000 + 22,500
                                    = 1,42,500