Question:medium

Misha Ltd. issued 6,000, 8% Debentures of ₹100 each at ₹96 per debenture. 8% Debentures Account will be credited by:

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Always credit the debentures account with the face value, irrespective of the issue price.
Updated On: Jan 13, 2026
  • ₹5,76,000
  • ₹24,000
  • ₹6,00,000
  • ₹60,000
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The Correct Option is C

Solution and Explanation

When 6,000 debentures, each with a face value of ₹100, are issued, the total face value of ₹6,00,000 is credited to the 8% Debentures Account. The ₹4 per debenture discount on issue is recognized as a distinct loss. Calculation: \[ \text{Total face value} = 6,000 \times ₹100 = ₹6,00,000. \]
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