Question

Maharaja Ltd. took over assets of ₹ 15,00,000 and liabilities of ₹ 2,00,000 of Dolphin Ltd. for an agreed purchase consideration of ₹ 12,60,000. It was agreed that the purchase consideration will be paid by issuing 11% Debentures of ₹ 100 each at 10% discount. The number of debentures issued will be

Options

• 13,000.

• 12,600.

• 10,000.

• 14,000.

Answer 1

14,000.

Explanation:

Debentures of ₹ 100 are issued at 10% discount, so issue price = ₹ 90 per debenture.

No. of Debentures = `(12,60,000)/90 = 14,000`