XYZ Industries Ltd., issued 2,000, 10% debentures of Rs. 100 each, at a premium of Rs. 10 per debenture payable as follows: On application Rs. 50, On allotment Rs. 60. The debentures were fully subscribed, and all money was duly received. Calculate the amount received at the time of allotment.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 1,20,000
Each debenture is issued at Rs. 110 (face value Rs. 100 plus a premium of Rs. 10). It is payable as Rs. 50 on application and Rs. 60 on allotment, so the premium falls in the allotment instalment.
Allotment money per debenture = Rs. 60 (Rs. 50 of face value + Rs. 10 premium)
Allotment money = 2,000 × Rs. 60 = Rs. 1,20,000
Of this, Rs. 1,00,000 goes to 10% Debentures A/c and Rs. 20,000 to Securities Premium Reserve A/c
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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