Question

Rehana, Shakina and Jasmine are partners. They share When debentures are issued as collateral security, the final entry for recording the transaction in the books is ______.

Options

• credit Debentures Account and debit Cash Account

• debit Debenture Suspense Account and credit Cash Account

• debit Debenture Suspense Account and credit Debentures Account

• debit Cash Account and credit the Loan Account for which security is given

Answer 1

Rehana, Shakina and Jasmine are partners. They share When debentures are issued as collateral security, the final entry for recording the transaction in the books is debit Debenture Suspense Account and credit Debentures Account.

Explanation:

The last entry for recording the transaction in the books when debentures are issued as collateral security is:

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