CUET Preparation Today
| Which of the following is correct with respect to debentures? |
They can be issued partly on credit and partly in cash They can not be issued as collateral security They can be issued for consideration other than cash They can be issued on credit |
| They can be issued for consideration other than cash |
| Debentures can be issued for consideration other than cash. Sometimes a company purchased assets from vendors and instead of making payment in cash issues debentures for consideration thereof. Such issue of debentures is called debentures issued for consideration other than cash. In that case also, the debentures may be issued at par, at a premium or at a discount then entries made in such a situation are similar to those of the shares issued for consideration other than cash, |
