A Ltd took over the assets of B Ltd- Assets for ₹7,60,000 and liabilities for ₹80,000 for ₹5,85,000. The consideration was payable by issue of 12% debentures of ₹100 each at a discount of 10%. How many no. of debentures issued?

6,500

The correct answer is option 1- 6,500.

Assets= ₹7,60,000

Liabilities = ₹80,000
Purchase consideration = ₹5,85,000

Debenture issued = Purchase consideration/Issue price

Issue price = 100 - Discount of 10%
                 = 100 - 10
                 = 90

Debentures issued = 5,85,000/90
                           = 6,500