Maharashtra State BoardHSC Arts 12th Board Exam
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Write One Word/Term/Phrase Which Can Substitute the Following - Book Keeping and Accountancy

One Word Answer

Write one word/term/phrase which can substitute the following
The issue of debentures more than face value of debentures

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Solution

Issue of debentures at premium
Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at premium’. For example, when a debenture of face value Rs 10 is issued at Rs 12, it is issued at a premium of Rs 2. The premium is credited to Securities Premium Account.

Concept: Issue of Debentures at Par at Premium and at Discount
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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 10 | Page 372
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