Which of the following is not a way of issuing debentures-

The correct answer is Option (2) → Issue of Debenture at capital

The price at which a debenture is issued is compared with its face value: equal to it (at par), above it (at a premium) or below it (at a discount). These are the only three ways of issue by price. "At capital" is not a way of issuing debentures at all; a debenture is a loan, not capital.

Option (1) Issue of Debenture at Par — A way of issuing debentures. The issue price equals the face value, say Rs. 100 for a Rs. 100 debenture.

Option (3) Issue of Debentures at premium — A way of issuing debentures. The issue price is more than the face value; the excess goes to Securities Premium.

Option (4) Issue of Debentures at discount — A way of issuing debentures. The issue price is less than the face value; the shortfall is a discount (a capital loss) to be written off.