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Issue and Redemption of Debentures — Accountancy STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceAccountancyIssue and Redemption of Debentures1 Mark
Question
When debentures are issued as collateral security, the final entry for recording the transaction in the books is:
  1. Debit debenture suspense a/c. and credit debentures a/c.
  2. Credit debentures a/c. and debit cash a/c.
  3. Debit debenture suspense a/c. and credit cash a/c.
  4. None of the options
✓

Answer

  1. Debit debenture suspense a/c. and credit debentures a/c.

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