At the time of the issue of debentures, Debenture Account will be credited by which of the following amount? |
Amount received Face value of the debentures Issue price of the debenture None of the above |
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 and is the amount debenture holders expect to receive when the debenture reaches its maturity date. However, it should not be confused with the market price, which can fluctuate based on various factors. |