ZPA Ltd. issued 10,000, 12% Debentures of ₹100 each at par payable in full on application by 1st April, 2024. Applications were received for 11,000 Debenture. Debentures were allotted on 7th April, 2024. Excess money was refunded. Which amount will appear in the balance sheet as “12% Debentures?

₹10,00,000

The correct answer is option 2- ₹10,00,000.

The total amount that will appear in the balance sheet as “12% Debentures” is the value of the 10,000 debentures that were allotted. So, the amount will be:

10,000 debentures × ₹100 each
= 10,00,000