At the time of the issue of debentures, Debenture Account will be credited by which of the following amount?

Face value of the debentures

The correct answer is option 2- Face value of the debentures.

The face value of debentures is the nominal value or principal amount that each debenture represents. It serves as the basis for calculating interest payments. It is the value that is credited in debentures account. The journal entry passed at the time of issue of debenture is as follows-

Bank A/c Dr.
    To Debenture Application & allotment A/c
(Money received)

Debenture Application & allotment A/c
       To Debentures A/c
(Money transferred to debentures account)
(Application money transferred to debentures Account on )