Maharashtra State BoardHSC Commerce 12th Board Exam
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State to Whether the Following Statement is True/False. - Book Keeping and Accountancy

MCQ
True or False

State to whether the following statement is True/False.
The issue of debenture more than face value is termed on issue of debentures at par.

Options

  • True

  • False

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Solution

False

Explanation:
 Issue of debentures at a price more than their face value is known as ‘issue of debentures at a premium’. The amount of a premium so received 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?
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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 9 | Page 373
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