Read the following information and answer the question.

ABC Ltd. issued 20,000, 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 ₹50,000 in securities premium reserve and ₹1,00,000 in the capital reserve. Profit earned by the company in the year is ₹75,000.

How much amount is received on application by the company?

₹10,00,000

The correct answer is option 1- ₹10,00,000.

Face value of debenture = ₹100
Amount payable on application = ₹50
Total no of debentures = 20,000
Amount received on application  = 20,000 x 50
                                                   = 10,00,000