Aashirward Company 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?

₹110

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