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?
Answer & explanation
Correct answer: option 4
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