P2 C2 ACCOUNTING FOR DEBENTURES — Elements of Account STD 12 Commerce — Question
Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP2 C2 ACCOUNTING FOR DEBENTURES1 Mark
Question
What is meant by debenture discount?
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Answer
When the company issues debentures at a price which is less than their face value or nominal value, the debentures are said to have been issued at discount. Thus, the different between face value and issued price is known as debenture discount.
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