When debentures of Rs 1 00 000 are issued as Collateral Security against a loan of Rs 1 50 000 the e...........

General Accounting Principles Accounting For Debentures

When debentures of Rs 1,00,000 are issued as Collateral Security against a loan of Rs 1,50,000, the entry for issue of debentures will be :

Credit Debentures Rs 1,50,000 and debit bank A/c Rs 1,50,000

Debit Debenture Suspense A/c Rs 1,00,000 and Credit Bank A/c Rs 1,00,000

Debit Debenture Suspense A/c Rs 1,00,000 and Credit Debentures A/c Rs 1,00,000.

Debit Cash A/c Rs 1,50,000 and Credit Bank A/c Rs 1,50,000

Debenture Suspense A/c DR. Rs 1,00,000

TO Debentures A/c Rs 1,00,000.

(Being Rs 1,00,000 are issued as Collateral Security against a loan)

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