Correct Answer: Debit Debenture suspense account and credit debenture account

Solution : When a corporation receives a loan or overdraft from a bank or any other financial institution, a collateral security may be described as a subsidiary, secondary, or supplementary security in addition to the primary security. The following is the final journal entry for this transaction:

Debenture suspense A/c     Dr.
To Debenture A/c

Hence the correct answer is option 1.