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Question : If a debenture of Rs.100 is issued at Rs.95 and is redeemable at Rs.100, then at the time of issue bank account will be debited by

Option 1: Rs 100

Option 2: RS 90

Option 3: Rs 95

Option 4: Rs 110


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs 95


Solution : Answer = Rs 95

When a debenture is issued at a discount, the bank account is debited for the amount received, which is the discounted value. In this case, the debenture is issued at Rs. 95, so the bank account will be debited by Rs. 95, representing the amount received from the issuance of the debenture.
Hence, the correct option is 3.

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