Universal Ltd. took over machinery of ₹3,30,000, furniture of ₹1,60,000 and liabilities of ₹80,000 from Amol Ltd. for a purchase consideration of ₹4,50,000.
The payment was made by issuing 10% Debentures of ₹50 each at a discount of 10%.
Find the number of debentures issued.
Purchase consideration:
= ₹4,50,000
Face value of each debenture:
= ₹50
Issued at 10% discount:
Issue Price:
= ₹50 − 10% of ₹50
= ₹50 − ₹5
= ₹45
Number of Debentures:
= Purchase Consideration ÷ Issue Price
= ₹4,50,000 ÷ ₹45
= 10,000
Answer: Option (D) 10,000 Debentures