When Debentures Are Issued As Collateral Security Which Account Is Credited?


(1) No accounting entry is required to be shown in the books of account at the time of issue of such debentures for the simple reason that the loan against which the debentures are issued as collateral security has already been credited, the debit being given to Bank.



When debentures are issued as collateral security?

Issue of Debentures as Collateral. Debentures issued as collateral security is secondary or parallel security for the original loan taken by the company. The lender can realize the collateral security in case borrower fails to make the payment of the original loan.


When debentures are issued as collateral security which account is credited?

(1) No accounting entry is required to be shown in the books of account at the time of issue of such debentures for the simple reason that the loan against which the debentures are issued as collateral security has already been credited, the debit being given to Bank.


Which account is debited when debentures are issued?

Discount on issue of debentures is a capital loss and over a period of 3 to 5 years or is charged to “Securities Premium Account” as per the guidelines issued by ICAI. The discount on issue of debentures can be written-off either by debiting it to profit and loss or to securities premium account.


What is entry for debenture issued at PER and redeemable at Per?

These debentures are redeemable at par Pass necessary entries. Loss on issue of debentures a/c Dr. Explanation: Debentures issued at par and redeemable at premium means company will get full face value of debentures and at the time of redemption company will refund debenture with premium.


How do you record debentures?

In the same way, when the company issue debenture at discount the amount is debited to the discount on issue of debentures account. The amount is shown on the asset side of the balance sheet, under the head miscellaneous expenses, until written off.


What is Journal of debenture issued at discount?

When debentures are issued by the company at a price less than its nominal value (face value) it is said to be issued at discount. It is important to note that the Companies Act has not put any restriction on the maximum limit of discount. For example, if a debenture of Rs. 2,000 is offered to the public at Rs.


How do you write off discount on issue of debentures?

For example, if the total discount allowed on issue of debentures is ` 10,000 and the debentures are issued for 10 years, the amount of discount to be written off every year will be 1/10th of the total discount, i.e., every year an amount equal to (1/10 x 10,000) = 1,000 will be written off over a period of 10 years.


What is structural isomerism Class 11 chemistry?

1) Structural Isomerism : Compounds having the same molecular formula but different structures i.e. different arrangement of atoms within the molecules are called structural isomers and the phenomenon is called structural isomerism.


What is water supply and sanitation engineering?

Led by Peter van der Steen the Water Supply, Sanitation and Environmental Engineering Department focuses on reducing water scarcity and achieving access to adequate and equitable drinking water, sanitation and hygiene.


Which of the following has minimum wavelength Mcq?

gamma rays


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Hydrogen ion (H+)is key = It indicates the acidity @ basicity of the. solution.  Equilibrium constant for the autoionization of water.


How does an X-ray tube work?

X-ray tube, also called Roentgen tube, evacuated electron tube that produces X rays by accelerating electrons to a high velocity with a high-voltage field and causing them to collide with a target, the anode plate.


How many odd days are in 400 years?

0


What is a key assumption?

Key Assumptions means the assumptions that are identified as key for the defined Project Plan and provide the basis for the Payment Plan.


What does Y MX C mean?

The equation y=mx+c is the general equation of any straight line where m is the gradient of the line (how steep the line is) and c is the y -intercept (the point in which the line crosses the y -axis).


What is difference between integral and integration?

is that integration is the act or process of making whole or entire while integral is (mathematics) a number, the limit of the sums computed in a process in which the domain of a function is divided into small subsets and a possibly nominal value of the function on each subset is multiplied by the measure of that


What is the synonym of construct?

build, erect, put up, set up, raise, establish, assemble, manufacture, fabricate, form, fashion, contrive, create, make. demolish.


What is EIRP RF?

Equivalent isotropic radiated power, EIRP, is the total radiated power from a transmitter antenna times the numerical directivity of the antenna in the direction of the receiver, or the power delivered to the antenna times the antenna numerical gain.


Does normalization guarantee a good DB design?

When using a relational database, normalization can help keep the data free of errors and can also help ensure that the size of the database doesn't grow large with duplicated data. At the same time, some types of operations can be slower in a normalized environment.


What are the 3 basic pieces of hardware?

Computer Hardware - CPU, RAM, and persistent storage

These three are found in all computers: laptops, smartphones, and tablets.


Dated : 01-Jul-2022

Category : Education

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