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Question
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.
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On Second and final call − Balance amount
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The issue of debentures more than face value of debentures
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