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?

6,000

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