Question

When debentures of ₹ 1,00,000 are issued as Collateral Security against a loan of ₹ 1,50,000, the entry for issue of debentures will be:

Options

• Credit Debentures ₹ 1,50,000 and debit bank A/c ₹ 1,50,000

• Debit Debenture Suspense A/c ₹ 1,00,000 and Credit Bank A/c ₹ 1,00,000.

• Debit Debenture Suspense A/c ₹ 1,00,000 and Credit Debentures A/c ₹ 1,00,000.

• Debit Cash A/c ₹ 1,50,000 and Credit Bank A/c ₹ 1,50,000.

Answer 1

Debit Debenture Suspense A/c ₹ 1,00,000 and Credit Debentures A/c ₹ 1,00,000.