Question

Bishan Ltd. acquired assets worth ₹ 12,60,000 and took over the liabilities of ₹ 2,40,000 of Nimi Ltd. for a purchase consideration of ₹ 9,40,000. Bishan Ltd. issued 12% debentures of ₹ 100 each at a discount of 6% in favour of Nimi Ltd. for payment of purchase consideration. The number of debentures issued were:

Options

• 12,600

• 9,400

• 9,600

• 10,000

Answer 1

10,000

Explanation:

1. Purchase Consideration = ₹ 9,40,000

2. Calculate Issue Price per Debenture:

Face Value = ₹ 100

Discount = 6% of ₹ 100 = ₹ 6

Issue Price = ₹ 100 − ₹ 6

= ₹ 94

3. Calculate Number of Debentures:

Number of Debentures = `"Purchase Consideration"/"Issue Price"`

= `(9,40,000)/94`

= 10,000