NT Ltd. purchased machinery worth Rs. 3,60,000 from RELY Ltd. The payment is to be made by the issuance of 12% debentures of Rs. 100 each at 10% discount. Number of Debentures issued by NT Ltd. are:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 4,000 Debentures
When debentures are issued to pay for an asset, the number of debentures = amount payable ÷ issue price of one debenture. At a discount, the issue price is below the face value.
Issue price = Rs. 100 − 10% of Rs. 100 = Rs. 90
Number of debentures = Rs. 3,60,000 ÷ Rs. 90 = 4,000
Dividing by the face value of Rs. 100 would give 3,600 debentures, which is the figure for an issue at par. The 12% rate of interest does not enter the calculation.
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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