AMA Ltd. purchased asset of Nimbus Pvt. Ltd. for 8,40,000 and took over liabilities of
80,000 for an agreed value of ?8,00,000. AMA Ltd. issued 12% debentures of ?100 each at
a premium of 25%. Calculate the number of debentures issued.
A. 8,000
B. 6,400
C. 7,360
D. 9,200
Solution:
Asset value = 8,40,000
Liabilities = 80,000
Net value = 760000
Number of debentures = 7,60,000 / 125 = 6080
Asset value = 8,40,000
Liabilities = 80,000
Net value = 760000
Number of debentures = 7,60,000 / 125 = 6080