How many debentures are issued by the company if the purchase consideration is ₹1,98,000 & Face value of the debenture is ₹100 which is issued at a 10% premium?

1800

The correct answer is option 3- 1800.

Face value of debenture = 100
Add: Premium 10%= 100 X 10/100 =10
Value at which debenture issued = 100 + 10
                                                     = ₹110

Number of debentures issued in case of 10% premium = Purchase consideration/Issue price
                                                                                      = 1,98,000/110
                                                                                      = 1,800 Debentures