A company issued 10,000 12% Debentures of ₹100 each at 20% Premium. Applications received for 8,000 Debentures. All the applications were accepted and debentures were allotted. What amount will be shown on the company's Balance Sheet in reserves and surplus?

₹1,60,000

The correct answer is option 3- ₹1,60,000.

Issued debentures = 10,000
Applications received = 8,000 
Premium = 20% i.e. 100 x 20/100
              = 20

Amount in securities premium reserve = 8,000 x 20
                                                        = 1,60,000

*Securities Premium will be shown in the Reserves and Surplus heading.