Question : When the Company decided to record the issue of Debentures as Collateral Security: Which of the following accounts should be debited?
Option 1: % Debenture account
Option 2: Debentures suspense account
Option 3: Bank loan account
Option 4: No entry required
Correct Answer: Debentures suspense account
Solution : Answer = Debentures suspense account
When a company decides to record the issue of debentures as collateral security, the appropriate account to be debited is the "Debentures Suspense Account." This account is used to temporarily hold the debenture proceeds until the collateral is provided. It ensures accurate recording and tracking of the transaction until it is finalized. Hence, the correct option is 2.
Question : When the Company decided not to record the issue of Debentures as Collateral Security. Which of the following accounts will be credited?
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 1,40,000. Claim for workmen compensation Rs. 1,10,000.
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 20,000. Claim for workmen compensation Rs. 45,000.
Question : On firm dissolution, which one of the following accounts should be prepared at the last?
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile