At the time of issue of debentures, the debentures account is credited with:

Nominal value of debentures

The correct answer is option 3- Nominal value of debentures.

At the time of issue of debentures, the debentures account is credited with the nominal value of the debentures regardless of whether they are issued at par, premium, or discount.

Debentures are said to be issued at par when the amount to be collected on them is equal to their nominal or face value. If the issue price is more than nominal or face value, it is said to be issued at a premium. If the issue price is less than the nominal or face value, it is said to be issued on discount. The amount received as premium is credited to ‘securities premium account’ whereas amount of discount allowed is debited to “loss/discount on issue” and is written-off over the years.