Blue Prints 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…

The purchase consideration paid by Blue Prints Ltd. is Rs. 3,15,000.

The debentures are issued at a premium of 5%.

Face value of each debenture = Rs. 100

Premium per debenture = 5% of Rs. 100 = Rs. 5

Issue price per debenture = Rs. 100 + Rs. 5 = Rs. 105

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Number of debentures issued = $\frac{\text{Purchase Consideration}}{\text{Issue Price per Debenture}}$Issue Price per DebenturePurchase Consideration​

Number of debentures issued = $\frac{3,15,000}{105}$1053,15,000​ = 3,000 debentures

The assets purchased (Building, Machinery, Furniture) and liabilities taken over are used to determine the net assets acquired, but the actual payment is made based on the agreed purchase consideration of Rs. 3,15,000, which is discharged by issuing debentures at their issue price of Rs. 105 each.

Correct Option: 2 (3,000 debentures)