Multiple choice

How many debentures will a company be required to issue for satisfying the purchase consideration of Rs. 28, 80, 000 if the debenture is of Rs. 80 and is issued at a premium of Rs. 10 per debenture?

  1. Rs. 28, 800

  2. Rs. 30, 800

  3. Rs. 32, 200

  4. Rs. 32, 000
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Purchase consideration includes face value as well as premium.thus,No of debentures= 28,80,000/(80+10)                                  =28,80,000/90                                 = 32,000 debentures

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