Question

Arnav Ltd. purchased assets worth ₹ 24,00,000. It issued 9% debentures ₹ 100 each at a discount of 4% for payment of the purchase consideration. The number of debentures issued to vendor were ______.

Options

• ₹ 24,000

• ₹ 25,000

• ₹ 30,000

• ₹ 28,000

Answer 1

Arnav Ltd. purchased assets worth ₹ 24,00,000. It issued 9% debentures ₹ 100 each at a discount of 4% for payment of the purchase consideration. The number of debentures issued to vendor were ₹ 25,000.

Explanation:

• Purchase Consideration: ₹ 24,00,000.
• Issue Price per Debenture: ₹ 100 − 4% = ₹ 96 (after a 4% discount).
• Number of Debentures Issued:
  `("Total Purchase Consideration")/("Issue Price per Debenture")` = `(24,00,000)/96` = 25,000

Thus, the company issued 25,000 debentures to pay the vendor.