A company issued 1,00,000 12% debentures of ₹100 each. The amount of interest on debentures will be:

₹12,00,000

The correct answer is option 3- ₹12,00,000.

No of debentures = 1,00,000
Face value = ₹100
Total value = 1,00,000 x 100
                    = 1,00,00,000

Interest on debentures = 1,00,00,000 x 12/100
                                  = 12,00,000