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: The amount paid to Silver Ltd will be
Option 1: Rs 63
Option 2: Rs 60
Option 3: Rs 70
Option 4: None of the above
Correct Answer: Rs 70
Solution : Answer = Rs 70
Vendor Co. Dr 4,80,0000
To Debentures A/c 436300
To securities premium A/c 43630
To Cash A/c 70
Hence, the correct option is 3.