In case of issue of debentures as collateral security, the effect in the Balance Sheet is nullified because balance of Debenture Suspense Account is deducted from Debentures Account.

True

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False

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Solution

The correct option is A True
In case of issue of debentures as collateral security, the effect in the Balance Sheet is nullified because balance of Debenture Suspense Account is deducted from Debentures Account is a true statement.

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Similar questions

Describe the meaning of ‘Debenture issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

Describe the meaning of 'Debenture Issued as Collateral Securities. What accounting treatment is given to the issue of debentures in the books of accounts?

On the issue of debentures as collateral security, which account is credited?

Q. On issue of debentures as a collateral security, which account is creadited?

The Debentures Suspense Account will appear on the ___side of the balance sheet.

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In case of issue of debentures as collateral security, the effect in the Balance Sheet is nullified because balance of Debenture Suspense Account is deducted from Debentures Account.

The correct option is A TrueIn case of issue of debentures as collateral security, the effect in the Balance Sheet is nullified because balance of Debenture Suspense Account is deducted from Debentures Account is a true statement.

The correct option is A True
In case of issue of debentures as collateral security, the effect in the Balance Sheet is nullified because balance of Debenture Suspense Account is deducted from Debentures Account is a true statement.