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:

₹1,80,00,000 ₹18,00,000 ₹1,08,00,000 ₹10,80,000

₹1,80,00,000

The correct answer is Option (1) - ₹1,80,00,000. Debentures = 12,00,000 Discount = 15 per debenture Discount = 1200000 x 15              = 18000000