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Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.
  • a)
    4,000
  • b)
    3,500
  • c)
    3,000
  • d)
    2,000
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,...
Purchase consideration = Rs.315000
Issue price of 1 debenture = Rs.105
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Community Answer
Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,...
Number of debentures issued = Purchase consideration / (Face value + Premium)

Given:
Purchase consideration = Rs. 3,15,000
Face value = Rs. 100
Premium = 5% of face value = 5/100 * 100 = Rs. 5

Substituting the values into the formula, we get:

Number of debentures issued = 3,15,000 / (100 + 5)
Number of debentures issued = 3,15,000 / 105

Calculating the above expression, we get:

Number of debentures issued = 3,000

Therefore, the number of debentures issued by Romi Ltd. is 3,000 (Option C).
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Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.a)4,000b)3,500c)3,000d)2,000Correct answer is option 'C'. Can you explain this answer?
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Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.a)4,000b)3,500c)3,000d)2,000Correct answer is option 'C'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.a)4,000b)3,500c)3,000d)2,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Romi Ltd. purchased building worth Rs. 1,50,000 machinery worth Rs. 1,40,000 and furniture worth Rs. 10,000 from xyz co. and took over its liabilities of Rs. 20,000 for a purchase consideration of Rs. 3,15,000. They paid the purchase consideration by issuing 12% debentures of Rs. 100 each at a premium of 5%. What will be the number of debentures issued by Romi Ltd.a)4,000b)3,500c)3,000d)2,000Correct answer is option 'C'. Can you explain this answer?.
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