Question

X Co. Ltd. purchased assets worth Rs.28,80,000. It issued debentures of Rs. 100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is ______.

Options

• 30,000

• 28,800

• 32,000

• None of the above

Answer 1

X Co. Ltd. purchased assets worth Rs.28,80,000. It issued debentures of Rs. 100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is 30,000.

Explanation:

Number of debentures issued in case of 4% discount.

Face value	100
Less: Discount 4 %	4
Value at which it is issued	96

= Rs. `((28,80,000)/96)` = 30000 debentures