Suvidha Ltd. purchased machinery worth Rs.1,98,000 from Suppliers Ltd. The payment was made by issue of 12% debentures of Rs.100 each. How many debentures will be issued at a 10% discount?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 2,200 debentures
Step 1: Given
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Machinery purchased = ₹1,98,000
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Debenture Face Value = ₹100
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Issued at 10% discount → Issue Price = ₹100 − ₹10 = ₹90
Step 2: Number of debentures to be issued:
No. of Debentures= Purchase Price/ issue Price Per Debenture
= 1,98,000/90
= 2,200