Given:
- Purchase consideration = Rs 3,15,000
- Debentures of Rs 100 each issued at 5% premium
When debentures are issued at a premium, the issue price per debenture increases.
Face value of each debenture = Rs 100
Premium = 5% of Rs 100 = Rs 5
Issue price per debenture = Rs 100 + Rs 5 = Rs 105
To find the number of debentures issued:
Number of debentures = Issue Price per DebenturePurchase Consideration
Number of debentures = 1053,15,000
Number of debentures = 3,000
The information about assets worth Rs 3,00,000 and liabilities of Rs 20,000 is provided to show how the purchase consideration of Rs 3,15,000 was arrived at (Net assets taken over: 3,00,000 - 20,000 = 2,80,000, plus some goodwill). However, for calculating the number of debentures, only the total purchase consideration and issue price matter.