Select most appropriate alternative from those given below :

The issue of debentures more than face value is called___________.
a) at par
b) at discount
c) at premium
d) none of these

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Solution

The issue of debentures more than face value is called at premium.

Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at a premium’. Such a premium is credited to the Securities Premium Account.

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Similar questions

Q. Select most appropriate alternative from those given below :

The issue of debentures less than the face value is called ___________.
a) at par
b) at premium
c) at discount
d) none of these

Q. Select most appropriate alternative from those given below :

The issue of debenture at its face value is called the issue ___________.
a) at par
b) at discount
c) at premium
d) none of these

Pass journal entries in the following cases:
(a) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 5% redeemable at par.
(b) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 10% redeemable at par.
(c) A Co.Ltd. issued ₹40,000; 12% Debentures at par redeemable at 10% premium.
(d) A Co.Ltd. issued ₹40,000; 12% Debentures at a discount of 5% and redeemable at 5% premium.
(e) A Co.Ltd. issued ₹40,000; 12% Debentures at a premium of 10% redeemable at 110%.

Q. Select the most appropriate answer from the alternatives given below and rewrite the sentence :

If shares are issued at its face value, it is called as issue at __________________.
a) premium
b) discount
c) par
d) none of these

Q. State to whether the following statements are True/False.

The issue of debenture more than face value is termed on issue of debentures at par.

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Select most appropriate alternative from those given below : The issue of debentures more than face value is called___________. a) at par b) at discount c) at premium d) none of these

The issue of debentures more than face value is called at premium. Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at a premium’. Such a premium is credited to the Securities Premium Account.

Select most appropriate alternative from those given below :

The issue of debentures more than face value is called___________.
a) at par
b) at discount
c) at premium
d) none of these

The issue of debentures more than face value is called at premium.

Explanation: When debentures are issued at a price more than their face value, it is known as ‘issue of debentures at a premium’. Such a premium is credited to the Securities Premium Account.