Answer the questions from the passage-
XYZ Ltd. purchased assets worth Rs 3,00,000 from Blue Prints Ltd., and took over its liabilities of Rs 20,000 for a purchase consideration of Rs 3,15,000. XYZ Ltd., paid the purchase consideration by issuing 12% debentures of Rs 100 each at a premium of 5%.
Number of debentures issued are:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 3,000
When debentures are issued to the vendor to pay the purchase consideration, the number of debentures is the consideration divided by the issue price of one debenture, not by its face value.
Issue price = Rs 100 + 5% premium = Rs 105
Number of debentures = Rs 3,15,000 ÷ Rs 105 = 3,000
Of the Rs 3,15,000, Rs 3,00,000 (3,000 × Rs 100) is credited to 12% Debentures Account and Rs 15,000 (3,000 × Rs 5) to Securities Premium Reserve. Dividing by the face value of Rs 100 would give 3,150, which is the answer only when the issue is at par.
NCERT (2026-27 edition):
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