Mehak Ltd. took a loan of Rs. 30,00,000 from a bank against primary security worth Rs. 40,00,000 and issued 4,000, 6% debentures of Rs. 100 each as a collateral security. The company, again after one year, took a loan of Rs. 50,00,000 from the bank against the plant as primary security and deposited 6,000, 6% debentures of Rs. 100 each as collateral security.
What is the amount of debenture suspense account in the balance sheet?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 10,00,000
When debentures are issued as collateral security and the issue is recorded in the books, Debenture Suspense A/c is debited with the nominal value of the debentures. The amounts of the loans and of the primary security do not enter this figure.
First issue: 4,000 × Rs. 100 = Rs. 4,00,000
Second issue: 6,000 × Rs. 100 = Rs. 6,00,000
Neither loan is repaid, so Debenture Suspense A/c = Rs. 4,00,000 + Rs. 6,00,000 = Rs. 10,00,000
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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