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Question : When the Company decided not to record the issue of Debentures as Collateral Security. Which of the following accounts will be credited? 

Option 1: % debentures 

Option 2: No entry required 

Option 3:  Capital reserve 

Option 4: Debenture suspense account


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: No entry required


Solution : Answer = No entry required

If the company decides not to record the issue of debentures as collateral security, no entry is required in the accounting records because no transaction is taking place. Therefore, no account needs to be credited in this scenario, hence the correct answer is "No entry required."
Hence, the correct option is 2.

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