ABC Ltd., issued 3,000, 14% Debentures of ₹100 each at a discount of 5% on April 1, 2023. Interest on these debentures is payable annually on March 31 each year. The debentures are redeemable at par in three equal instalments at the end of the third, fourth and fifth year. Discount on issue of debentures is-

₹15,000

The correct answer is option 1- ₹15,000.

No of debentures = 3,000
Face value = ₹100
Discount = 5%
Discount = 100 x 5/100
              = 5

Total discount on debenture = 3,000 x 5
                                         = 15,000