Based on following information answer question:
Apex Ltd. issued to public ₹10,00,000, 10% Debentures of ₹100 each at par, redeemable at a premium of 20%. It also issued 10,000, 11% Debentures ₹100 each as collateral security of against bank loan of ₹8,00,000.
The company bought building worth ₹50,00,000 from Beta Ltd. against a cheque of ₹20,00,000 and balance by issue of 12% Debentures of ₹100 each at a premium of 20%.
Number of debentures issued to Beta Ltd. is __________.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) - 25,000.
Building purchased and ₹30,00,000 paid by issue of 12% Debentures of ₹100 each at a premium of 20%.
No of debentures issued = Purchase consideration / Issue price
Issue price = 100 + 20 (20% of 100 as premium)
= 120
No of debentures = 30,00,000/120
= 25,000