Manubhai Patel Company Limited purchased assets of the book value of Rs. 12,00,000 from another company and agreed to make the payment of purchase consideration by issuing 10% debentures of Rs. 100 each at 150% premium. Find the number of debentures issued?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 4,800 Debentures
When assets are bought and paid for by issuing debentures, the number of debentures is the purchase consideration divided by the issue price of one debenture, not by its face value.
Issue price = Rs. 100 + 150% premium (Rs. 150) = Rs. 250
Number of debentures = Rs. 12,00,000 ÷ Rs. 250 = 4,800
Dividing by the face value of Rs. 100 would give 12,000 debentures, which ignores the premium the vendor accepts on each one.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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