Question : If a debenture of Rs.100 is issued at Rs.106 and is redeemable at Rs.110, at the time of issue of debentures.
Debentures account will be credited by -----
Option 1: Rs 106
Option 2: Rs 110
Option 3: Rs 100
Option 4: Rs 94
Correct Answer: Rs 100
Solution : Answer = Rs 100
Bank A/c Dr. 106
To Deb. Application and allotment A/c 106
Deb. Application and Allotment A/c Dr 106
Loss on issue of Deb. A/c Dr. 10
To % Deb. A/c 100
To Securities premium Reserve A/c 6
To Premium on Red. of Deb. A/c 10
Hence, the correct option is 3.