Romi Ltd. acquired assets of ₹20 lakh and took over creditors of ₹2 lakh from Kapil Enterprises. Romi Ltd. issued 8% debentures of ₹100 each at a discount of 10% as purchase consideration. How many debentures are issued for purchase consideration?
Answer & explanation
Correct answer: option 1
The correct answer is option 1 - 20000
Purchase consideration = 2000000 - 200000
= ₹1800000
No. of debentures issued = Purchase Consideration/ Issue Price of a Debenture
Issue price = 100 - discount(100 X 10/100)
= 100 - 10
= 90
No of debentures issued = 1800000/90
= 20000