AB&Co. purchased assets worth Rs. 28,80,000 from vendor. It issued debentures of Rs. 100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is :
AB&Co. purchased assets worth Rs. 28,80,000 from vendor. It issued debentures of Rs. 100 each at a discount of 4% in full satisfaction of the purchase consideration. The number of debentures issued to vendor is :
Solution
✅ Correct Option: 1
Issue price per debenture = Face Value - Discount = 100 - 4 = 96.
Number of debentures issued = Purchase consideration / Issue price
= 28,80,000 / 96 = 30,000 debentures.
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