Practicing Success
Read the following information and answer the question. ABC Ltd offered 20,000, 12% debentures of ₹100 each at a premium of 10% payable as ₹40 on application (including premium) and balance on allotment redeemable after 8 years. 30,000 applications are received by the company and the allotment is made on pro-rata basis. All the money on application and allotment is received by the company timely. |
How much amount will go into the securities premium reserve? |
₹2,00,000 ₹4,00,000 ₹6,00,000 ₹3,00,000 |
₹2,00,000 |
The correct answer is option 1- ₹2,00,000. Application accepted = 20,000 |