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Question
Select most appropriate alternative from those given below :
The issue of debentures less than the face value is called ___________.
Options
at par
at premium
at discount
none of these
Solution
The issue of debentures less than the face value is called at discount.
Explanation: When debentures are issued at a price below their face value, it is known as ‘issue of debentures at discount’. Such discount is debited to Discount on Issue of Debentures Account.
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