Read the following passage and answer the following question.

ABC Ltd. issued 20,000, 6% debentures of ₹100 each at a discount of 4% redeemable at a premium of 5% after 3 years from 1st April 2017. The amount payable on the application is ₹50 and the balance on the allotment. The company has a balance of ₹50,000 in securities premium reserve and ₹1,00,000 in the capital reserve. Profit earned by the company in the year is ₹75,000.

How much amount is payable on allotment per debenture?

₹46

The correct answer is option 1- ₹46.

Face value of debenture = ₹100
Discount = 4%
Discount Amount = 100 x 4/100
                            = ₹4

Amount payable on application = ₹50
Amount payable on allotment = Face value - Application money - Discount
                                               = 100 - 50 - 4
                                               = ₹46