ABC Ltd offered 20000, 12% debentures of ₹100 each at a premium of 10% payable as ₹40 on application(including premium) and balance on allotment redeemable after 8 years. 30000 applications are received by the company and the allotment is made on pro-rata basis. All the money on application and allotment is received by the company timely.

What is the amount of allotment per debenture?

₹70

Face value of debenture = ₹100
Application money  = ₹40 including premium of 10% means premium is = 100 x 10/100 = ₹10.
Application money excluding premium = 40- 10
                                                              = 30
Allotment money = 100 -30
                           = ₹70