Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Select Most Appropriate Alternative from Those Given Below : - Book Keeping and Accountancy

MCQ

Select most appropriate alternative from those given below :
The issue of debentures more than face value is called___________.

Options

  •  at par

  •  at discount

  •  at premium

  •  none of these

Advertisement Remove all ads

Solution

The issue of debentures more than face value is called at premium.

Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at a premium’. Such a premium is credited to the Securities Premium Account.

Concept: Issue of Debentures at Par at Premium and at Discount
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 11 Company Accounts Part - 2 (Accounting for Debentures)
Exercise | Q 6 | Page 372
Advertisement Remove all ads

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×