PQ Ltd. purchased assets worth Rs. 38,00,000. It issued debentures of Rs. 100 each at a discount of 5 percent in full satisfaction of the purchase consideration. The number of debentures issued to vendor are:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 40,000
The vendor is paid in debentures, so the number of debentures = purchase consideration ÷ issue price, and the issue price is the face value less the discount.
Issue price = Rs. 100 − 5% of Rs. 100 = Rs. 95
Number of debentures = Rs. 38,00,000 ÷ Rs. 95 = 40,000
The check: face value = 40,000 × Rs. 100 = Rs. 40,00,000, and the discount on issue = Rs. 2,00,000, so the vendor receives debentures worth Rs. 38,00,000. A discount means more debentures than Rs. 38,00,000 ÷ Rs. 100 = 38,000, not fewer.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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