CUET UG 2025 — Accountancy Company Accounts

Given Information:

• Purchase Consideration = Rs. 98,000
• Face Value of each debenture = Rs. 100
• Discount on issue = 20%

Calculation of Issue Price:

When debentures are issued at 20% discount:

Issue Price per debenture = Face Value - Discount

Issue Price = Rs. 100 - (20% of Rs. 100) = Rs. 100 - Rs. 20 = Rs. 80

Calculation of Number of Debentures:

The vendor needs to be paid Rs. 98,000 as purchase consideration. Since each debenture is issued at Rs. 80:

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

Number of Debentures = $\frac{98,000}{80}$8098,000​ = 1,225 debentures

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Note: When debentures are issued at a discount to settle purchase consideration, the number of debentures is calculated based on the issue price (not face value). The vendor receives 1,225 debentures of Rs. 100 face value each (total face value = Rs. 1,22,500), but these are issued at Rs. 80 each to settle the Rs. 98,000 liability.