A Company issued ₹1,00,000, 9% Debentures of ₹100 each at a discount of 5% but redeemable at premium of 5%. The total amount received on such debenture is:

₹95,000

The correct answer is Option (2) - ₹95,000.

₹1,00,000, 9% Debentures of ₹100 each.
No of debentures = 100000/100
                          = 1000

1000 debentures are issued at discount of 5%
Discount = 100 x 5/100
             = ₹5
Price after discount = 100-5
                            = 95

Amount received = 1000 x 95
                         = ₹95000