Read the following information carefully and answer the question.
A Limited took over assets of ₹3,00,000 and liabilities of ₹10,000 from X and co. Ltd. for an agreed purchase consideration of ₹2,70,000 to be satisfied by issue of 10% debentures of ₹100 each at a premium of 20%. The company also took a loan of ₹10,00,000 from Punjab National Bank and issued 10% debentures of ₹12,00,000 of ₹100 each as collateral security. The rate of Interest on loan is 12% p.a.
Calculate the number of Debentures issued by A Ltd. for consideration other than cash :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 2,250
Number of debentures = Purchase consideration ÷ Issue price of one debenture
Issue price = ₹100 + 20% premium = ₹120
Number of debentures = ₹2,70,000 ÷ ₹120 = 2,250
The debentures issued to Punjab National Bank as collateral security are not for consideration other than cash, so they are not counted.
NCERT (2026-27 edition):
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