TARA Co. Ltd purchased assets worth ₹72,00,000. It issued debentures of ₹100 each at a Premium of 20% in full satisfaction of the purchase consideration. What will be the number of debentures issued to vendor?

60,000

The correct answer is option 4- 60,000. 

Value of Assets purchased= ₹72,00,000
Face value per debenture = 100
Premium = 20% 
Premium amount = 100 x 20/100
                         = 120

Issue price = 100 + 20
                 = 120

Total No. of debentures issued = Purchase Consideration/Issue Price of a Debenture
                                            = 72,00,000/120
                                            = 60,000