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. The Bank account will be debited by
Option 1: Rs 100
Option 2: Rs 106
Option 3: Rs 110
Option 4: Rs 94
Answer (1)
25th Jan, 2024
Correct Answer: Rs 106
Solution : Answer = Rs 106
When a debenture is issued at a premium, the bank account is debited by the total amount received from the issue. In this case, since the debenture is issued at Rs. 106, the bank account will be debited by Rs. 106 representing the premium amount received in addition to the face value.
Hence, the correct option is 2.
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