When Debentures are issued at discount for consideration other than cash then correct journal entry will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Vendor A/c Dr. Discount on issue of Debenture A/c Dr. To Debentures A/c
The vendor is settled by debentures. When they are issued at a discount, the vendor is debited with the issue price, the discount is debited separately, and Debentures Account is credited with the nominal value.
Entry:
Vendor A/c Dr.
Discount on issue of Debenture A/c Dr.
To Debentures A/c
NCERT (2026-27 edition):
|
