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When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.
- a)Credit Debentures A/c. and debit cash A/c.
- b)Debit Debenture suspense A/c and credit cash A/c
- c)Debit Debenture suspense A/c and credit debentures A/c
- d)Debit cash A/c and credit the loan A/c for which security is given
Correct answer is option 'C'. Can you explain this answer?
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When debentures are issued as collateral security, the final entry for...
Debit and Credit Entry for Collateral Debentures
When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is as follows:
- Debit Debenture Suspense A/c: The debentures issued as collateral security are recorded in the books under a suspense account called Debenture Suspense A/c. This account represents the value of the debentures held as collateral.
- Credit Debentures A/c: The Debentures A/c is credited to reflect the issuance of the debentures as collateral security. This entry shows that the company has pledged its debentures as security against a loan or other obligation.
By making the above entry, the company acknowledges the issuance of debentures as collateral security in its books. This helps in maintaining accurate records of the company's financial transactions and obligations.
When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is as follows:
- Debit Debenture Suspense A/c: The debentures issued as collateral security are recorded in the books under a suspense account called Debenture Suspense A/c. This account represents the value of the debentures held as collateral.
- Credit Debentures A/c: The Debentures A/c is credited to reflect the issuance of the debentures as collateral security. This entry shows that the company has pledged its debentures as security against a loan or other obligation.
By making the above entry, the company acknowledges the issuance of debentures as collateral security in its books. This helps in maintaining accurate records of the company's financial transactions and obligations.
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When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer?
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When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer?.
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When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of When debentures are issued as collateral security, the final entry for recording the collateral debentures in the books is __________.a)Credit Debentures A/c. and debit cash A/c.b)Debit Debenture suspense A/c and credit cash A/cc)Debit Debenture suspense A/c and credit debentures A/cd)Debit cash A/c and credit the loan A/c for which security is givenCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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