Answer please ! Question no.2 of mtp series 2 of September 2025-- Why they take debentures for calculating purchase consideration??

Question

Aqra · Answer

They included it to calculate net worth of the company as it is liability

Eshita · Answer

If in question there is not written that debentures are issued in consideration of this or that or for specific payment then we will take it as purchase consideration

Eshita · Answer

Yes

Mehul · Answer

Then , if a question specifically says to take debentures as PC , then we have to take debentures as PC?

Eshita · Answer

Same question module me bhi hai you can see that also clarity acche se aa jayegi

Pushan · Answer

anything that is given to the shareholders of the company whose assets and liabilities are being taken over is included in purchase consideration. it could be issuing equity shares, pref shares, debentures or even paying cash

Eshita · Answer

If debentures are issued to company as purchase consideration toh include krte hai aur agr outsiders ko ya payment krne k liye issue krte hai toh nhi...in short if issued for other then payment or settling then it's included

Answer please ! Question no.2 of mtp series 2 of September 2025-- Why they take debentures for calculating purchase consideration??

7 answers

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