Romi Ltd. acquired assets of ₹20 lakh and took over creditors of ₹2 lakh from Kapil Enterprises. Romi Ltd. issued 8% debentures of ₹100 each at par as purchase consideration. What will be the purchase consideration for the purchase of the business?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹18,00,000.
Purchase consideration = Assets - Liabilities
= 20,00,000 - 2,00,000
= ₹18,00,000