Question

Arnav Ltd. purchased assets worth \rupee 24,00,000. It issued 9\% debentures of \rupee 100 each at a discount of 4\% for payment of the purchase consideration. The number of debentures issued to the vendor were:

• A. 24,000
• B. 25,000
• C. 30,000
• D. 28,000

Hint:

When debentures are issued at a discount, always subtract the discount from the face value to determine the effective price per debenture.

Answer 1

The Correct Option is B

Step 1: Calculate the effective price per debenture:
Issue price = \rupee 100 - \rupee 4 = \rupee 96.
Step 2: Calculate the number of debentures:
Number of debentures = Total consideration ÷ Issue price
\[ \text{Number of debentures} = \rupee 24,00,000 ÷ \rupee 96 = 25,000. \] Conclusion:
The total number of debentures issued to the vendor is \( 25,000 \).