A Ltd. issued 20000 10% debentures of ₹100 each at a discount of 5% on April 01, 2022 which are redeemable at a 10% premium. It has a sufficient balance of securities premium reserve. Calculate the amount to be written off from the securities premium reserve.

₹300000

Issue price: ₹100 - ₹5 = ₹95
Redemption price: ₹100 + ₹10 = ₹110
Total amount of debentures issued: 20000 * 95 = ₹1900000
Total amount of debentures redeemed: 20000 * 110 = ₹2200000
Amount to be written off from the securities premium reserve: 2200000 - 1900000 = ₹300000
Therefore, the amount to be written off from the securities premium reserve is ₹300000.
The securities premium reserve is used to write off any expenses incurred on the issue of debentures, such as the discount on issue. The premium payable on redemption of debentures is also written off from the securities premium reserve.