Z Ltd. Purchased a Machinery from B for ₹5,76,000. He will be paid by the issue of 10% Debentures of ₹100 each at a 4% discount. How many Debentures would be issued to him?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- 6,000.
Machinery price = 5,76,000
Face value of debenture = 100
Discount = 100 x 4/100
= 4
Issue price = 100 - 4
= ₹96
Number of Debentures issued = Purchase price of machinery/Issue price of debenture
= 5,76,000/ 96
= 6,000