ABC Ltd., Issued 3,000, 14% Debentures of Rs. 100 each at a discount of 5% on April 1, 2023. Interest on these debentures is payable annually on…

Given:

• Number of debentures = 3,000
• Face value per debenture = Rs. 100
• Discount on issue = 5%

The discount on issue of debentures is calculated on the total face value of debentures issued.

Calculating Total Face Value:

Total Face Value = Number of debentures × Face value per debenture

Total Face Value = 3,000 × Rs. 100 = Rs. 3,00,000

Calculating Discount on Issue:

Discount on Issue = Discount Rate × Total Face Value

Discount on Issue = $\frac{5}{100}$1005​ × Rs. 3,00,000

Discount on Issue = Rs. 15,000

The discount on issue of debentures is Rs. 15,000, regardless of the redemption pattern or interest rate. The discount is determined at the time of issue based on the total face value of all debentures issued.

Correct Answer: Option 1 (Rs. 15,000)