Maharashtra State BoardHSC Commerce 12th Board Exam
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Select Most Appropriate Alternative from Those Given Below : - Book Keeping and Accountancy


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


  •  at par

  •  at discount

  •  at premium

  •  none of these

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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
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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
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