Based on following information answer question:

Apex Ltd. issued to public ₹10,00,000, 10% Debentures of ₹100 each at par, redeemable at a premium of 20%. It also issued 10,000, 11% Debentures ₹100 each as collateral security of against bank loan of ₹8,00,000. 

The company bought building worth ₹50,00,000 from Beta Ltd. against a cheque of ₹20,00,000 and balance by issue of 12% Debentures of ₹100 each at a premium of 20%.

"Loss on issue of Debentures" will be :

₹ 2,00,000

The correct answer is Option (2) - ₹ 2,00,000.

Apex Ltd. issued to public ₹10,00,000, 10% Debentures of ₹100 each at par, redeemable at a premium of 20%.
As these debentures are redeemable at premium so it is a known loss to the company which will be debited at the time of issue.

JOURNAL ENTRY ON ISSUE OF SHARES-

Debenture Application & Allotment A/c Dr.     ₹1000000 (10000 X 100 amount received)
Loss on Issue of Debentures A/c         Dr.     ₹200000 (10000 x 20 premium on redemption)
            To Debentures A/c                                           ₹1000000 (10000 X 100 nominal value of debenture)
            To Premium on Redemption of Debenture A/c     ₹200000 (10000 x 20 premium on redemption)

Thus, loss on issue of debentures is ₹200000.