Savage Ltd. Purchased for cancellation its own 12,00,000, 9% debentures of ₹100 each at ₹85 each. The profit on cancellation of own debentures will be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) - ₹1,80,00,000.
Debentures = 12,00,000
Discount = 15 per debenture
Discount = 12,00,000 x 15
= 1,80,00,000