Read the following passage and answer the questions given below-

Abhishek Ltd. issued 5,000 debentures @ 9% p.a. of ₹100 each at a premium of ₹20 payable as follows-
Application- ₹40 including premium of ₹10
Allotment- ₹40 including premium of ₹10
Balance on the first and final call.
Applications were received fully and all amounts were received.

How much amount was transferred to the securities premium reserve account at the time of applications?

₹50,000

The correct answer is option 2- ₹50,000.

Applications = 5000 debentures
Application Amount = ₹40 including premium of ₹10
Amount transferred to securities premium reserve = 5000 X 10
                                                                                = ₹50,000