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
Answer (1)
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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