Read the following passage and answer the questions given below-
Abhishek Ltd. issued 5,000 debentures @ 9% p.a. of ₹100 each at a premium of ₹20 payable as follows-
Application- ₹40 including premium of ₹10
Allotment- ₹40 including premium of ₹10
Balance on the first and final call.
Applications were received fully and all amounts were received.
How much amount was received on the application?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹2,00,000.
Application = 5,000 debentures
Application amount = ₹40 including premium of ₹10
Total Amount = 5,000 X 40
= ₹2,00,000