ABC Limited purchased assets of a book value of र2,20,000 from another company and agreed to make the payment of purchase consideration by issuing 2,000, 10% debentures of र100 each at a premium of 10%. What will be the issue price of the shares?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹110.
Purchase Consideration = र2,20,000
Shares issued 2,000
Face value = र100
Premium = 100 X 10/100
= र10
Issue price = 100 + 10
= र110