Ard Company Limited purchased assets of a book value of र1,90,000 from another company and agreed to make the payment of purchase consideration by issuing 2,000, 10% debentures of र100 each at a discount of 5%. What will be the issue price of the debentures?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- र95.
Purchase consideration = र1,90,000
debentures = 2,000
Face value = र100
Discount = 5%
Discount amount = 100 x 5/100
= र5
Issue price = 100- 5
= र95