'A' Ltd purchased assets of the book value of ₹4,00,000 from another company and paid 50% in cash and rest by issuing 10% debentures of ₹100 each at a premium of ₹25. What is the number of debentures issued?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 1,600
Amount paid by issue of debentures = 50% of ₹4,00,000 = ₹2,00,000
Issue price of one debenture = ₹100 + ₹25 premium = ₹125
Number of debentures = ₹2,00,000 ÷ ₹125 = 1,600
The entry is Vendor A/c Dr. ₹2,00,000 to 10% Debentures A/c ₹1,60,000 and Securities Premium A/c ₹40,000.
NCERT (2026-27 edition):
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