AB & Co. purchased assets worth ₹28,80,000 from vendor. It issued debentures of ₹100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is:

30,000

The correct answer is option 1- 30,000.

Purchase Consideration = ₹28,80,000
Face value of debenture = ₹100
Discount = 4% means 100 x4/100
              = ₹4
Issue price = 100- 4
                  = ₹96

No of debentures issued = Purchase consideration/issue price
                                       = 28,80,000/96
                                       = 30,000