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Question
Nargis Ltd. purchased assets of ₹ 8,00,000 and took over liabilities of ₹ 2,00,000 from Gauri Ltd. The payment was made by issue of 8% Debentures of ₹ 100 each at a premium of 20%. Number of debentures issued will be ______.
Options
50,000.
5,000.
6,000.
6,00,000.
MCQ
Fill in the Blanks
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Solution
Nargis Ltd. purchased assets of ₹ 8,00,000 and took over liabilities of ₹ 2,00,000 from Gauri Ltd. The payment was made by issue of 8% Debentures of ₹ 100 each at a premium of 20%. Number of debentures issued will be 5,000.
Explanation:
Net assets taken over:
₹ 8,00,000 − ₹ 2,00,000 = ₹ 6,00,000
Issue price of each debenture at 20% premium:
₹ 100 + ₹ 20 = ₹ 120
No. of Debentures = `(6,00,000)/120 = 5,000`
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