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Question : Prakash Ltd. purchased assets worth Rs.2,20,000 and also took over the liabilities (creditors) of Rs.40,000 of Ajay Ltd. for a purchase consideration of Rs.1,92,000. Prakash Ltd. paid the purchase consideration by issuing 12% debentures of Rs.100 each at a premium of 20%.

Number of debentures issued

Option 1: 1,200 debentures 

Option 2: 1,600 debentures 

Option 3: 1,500 debentures 

Option 4: 1,000 debentures


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: 1,600 debentures


Solution : Answer = 1600 debentures

Number of DeBentures issued  $=\frac{1,92000}{120}=1600$ Debentures.
Hence, the correct option is 2.

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