A Ltd. Issued 10,000, 6% Debentures of ₹100 each at a discount of 10% payable ₹40 on application and the balance on allotment. How much amount would be debited to Bank account at the time of allotment?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹5,00,000.
Debentures = 10,000
Face value per debenture = 100
Application amount = 40
Discount = 10%
Discount amount = 100 x 10/100
= 10
Allotment amount = 100 - 40 - 10
= 50
Amount received on allotment = 10,000 x 50
= 5,00,000