ABC Ltd. issued 20,000, 6% debentures of ₹100 each at a discount of 4%. The amount payable on the application is ₹50 and the balance on the allotment. How much amount is payable on allotment per debenture?
Answer & explanation
Correct answer: option 1
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