A ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of B ltd. for an agreed purchase consideration of 6,00,000 payable 10% in cash and the balance by the issue of 15% Debentures of Rs. 100 each at 10% discount.

The number of debentures to be issued is-

6600

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6000

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5400

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4500

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Solution

The correct option is B
6000

Purchase Consideration = Rs 6,00,000
Payable in Cash =(10% of 6,00,000) = Rs 60,000
Balance to be issued for debentures = 6,00,000 - 60,000 = Rs 5,40,000
Face value of shares = 100
Discount = 10% of 100 = 10
Debenture value after discount = 100-10 = Rs 90 each

The number of debentures to be issued is
= 5,40,000/90
= Rs 6,000

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A ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of B ltd. for an agreed purchase consideration of 6,00,000 payable 10% in cash and the balance by the issue of 15% Debentures of Rs. 100 each at 10% discount. The number of debentures to be issued is-

A ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of B ltd. for an agreed purchase consideration of 6,00,000 payable 10% in cash and the balance by the issue of 15% Debentures of Rs. 100 each at 10% discount.

The number of debentures to be issued is-