Naman and Aman Limited bought business of Agrasen Limited consisting Sundry Assets of Rs. 3,60,000, Sundry Creditors Rs. 1,00,000 for a consideration of Rs. 3,07,200 out of which Rs. 19,200 is paid in cash. It issued 14% Debentures of Rs. 100 each fully paid at a discount of 4% in satisfaction of remaining purchase consideration. What will be the number of debentures issued?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 3000 debentures
When debentures are issued to the vendor, the number of debentures = amount to be paid in debentures ÷ issue price of one debenture. At a 4% discount, a Rs. 100 debenture is issued at Rs. 96.
Purchase consideration = Rs. 3,07,200
Paid in cash = Rs. 19,200
Balance to be paid in debentures = Rs. 3,07,200 − Rs. 19,200 = Rs. 2,88,000
Issue price = Rs. 100 − 4% of Rs. 100 = Rs. 96
Number of debentures = Rs. 2,88,000 ÷ Rs. 96 = 3,000 debentures
The net assets (Rs. 3,60,000 − Rs. 1,00,000 = Rs. 2,60,000) tell only that Rs. 47,200 of the price is goodwill; they do not change the number of debentures. Dividing by the face value gives 2,880, the answer only for an issue at par.
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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