ABC Ltd. issued 20000, 6% debentures of ₹100 each at a discount of 4% redeemable at a premium of 5% after 3 years from 1st April 2017. The amount payable on the application is ₹50 and the balance on the allotment. The company has a balance of ₹50000 in securities premium reserve and ₹100000 in the capital reserve. Profit earned by the company in the year is ₹75000.

How much amount is received on application by the company?

₹1000000

Face value of debenture = ₹100
Amount payable on application = ₹50
Total no of debentures = 20000
Amount received on application  = 20000 x 50
                                                 = 1000000