Question : A Company purchased assets of the book value of Rs.6,00,000 and took Over liabilities of Rs.1,50,000 from Silver Ltd. It was agreed that the purchase consideration settled at Rs.4,80,000 be paid by issuing debentures of Rs. 100 each at a premium of 10%.
Question:- It was further agreed that any fraction of the debenture be paid in cash. Number of debentures issued will be
Option 1: 4,300 debentures
Option 2: 4,400 debentures
Option 3: 4,000 debentures
Option 4: 4,363 debentures
Correct Answer: 4,363 debentures
Solution : Answer = 4363 debentures
Net assets = Rs 6,00,000- 1,50,000= Rs 4,50,000
Purchase consideration = 4,80,000
Goodwill = Rs 30,000
Number of debentures = Rs 4,80,000/ 110= 4363.63 debentures.
Hence, the correct option is 4.