X Ltd. purchased a building for ₹ 60,00,000 payable as 20% in Cash and balance by allotment of 8% debentures of ₹ 500 each at a premium of 20%. Number of debentures issued will be ______.

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X Ltd. purchased a building for ₹ 60,00,000 payable as 20% in Cash and balance by allotment of 8% debentures of ₹ 500 each at a premium of 20%. Number of debentures issued will be 8,000. Explanation: Calculate amount paid in Cash: Cash Payment = 20% of ₹ 60,00,000 = ₹ 12,00,000 Balance to be paid via debentures: Balance = ₹ 60,00,000 − ₹ 12,00,000 = ₹ 48,00,000 Issue price of one debenture: • Face value = ₹ 500 • Premium = 20% of ₹ 500 = ₹ 100 • Issue Price per Debenture = ₹ 500 + ₹ 100 = ₹ 600 Number of debentures to be issued: Number of debentures: (₹ 48,00,000)/(₹ 600) = 8,000

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