Question : What is true regarding debentures issued as collateral security?

Option 1: A debenture issue that is made by a company and given to a lender as secondary security is referred to as debenture issued as collateral security.

Option 2: A debenture issue that is made by a company and given to a lender as primary security is referred to as debenture issued as collateral security.

Option 3: A debenture issue that is made by a company and given to a lender as main security is referred to as debenture issued as collateral security.

Option 4: Both 2 and 3

Question : When the Company decided to record the issue of Debentures as Collateral Security: Which of the following accounts should be debited?

Option 1: % Debenture account 

Option 2: Debentures suspense account 

Option 3: Bank loan account

Option 4: No entry required 

Question : When the Company decided not to record the issue of Debentures as Collateral Security. Which of the following accounts will be credited? 

Option 1: % debentures 

Option 2: No entry required 

Option 3:  Capital reserve 

Option 4: Debenture suspense account

Question : On dissolution, goodwill account is transferred to :

Option 1: the Capital Accounts of Partners

Option 2: On the credit of Cash Account

Option 3: On the Debit of Realisation Account

Option 4: On the Credit of Realisation Account

Question :

 Debentures may be issued:

Option 1: for Cash

Option 2: for consideration other than Cash

Option 3: as Collateral Security

Option 4: All of the above