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Question
Which of the following column indicated in the statement given below is to be debited?
"Purchase of own debentures by the company for cancellation" ·
Options
Own debentures Account
Debentures Account
Assets Account
None of these
MCQ
Solution
Own debentures Account.
Explanation:
When the corporation purchases its own debentures, the "own debenture account" is deducted against the cash paid. Purchases of personal debentures should be regarded similarly to other investments.
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Redemption of Debentures
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