Z Ltd. issued 10% Debentures of ₹10 to a vendor having nominal value ₹2,50,000 at 20% discount for purchase of fixed assets of ₹2,00,000. How many debentures were issued to the vendors?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- 25,000.
Amount of Assets purchased = ₹ 2,00,000
Face value of debentures issued = ₹2,50,000
No. of Shares issued = 2,50,000 / 10
= 25,000