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?

₹18,00,000

The correct answer is option 2- ₹18,00,000.

Purchase consideration = Assets - Liabilities
                                      = 20,00,000 - 2,00,000
                                      = ₹18,00,000