How many debentures are issued by the company if the purchase consideration is ₹1,98,000 & Face value of the debenture is ₹100 which is issued at 10% discount?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 2,200.
Face value of debenture = ₹100
Less: Discount 10% = ₹10
Value at which debenture issued = 100-10
= ₹90
Number of debentures issued in case of 10% discount = Purchase consideration/ issue Value of debenture
= 1,98,000/90
= 2,200 debentures