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?

2,200 debentures

The correct answer is Option (4) → 2,200 debentures

Step 1: Given

• Machinery purchased = ₹1,98,000

• Debenture Face Value = ₹100

• 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