CBSE Class 12 Accountancy Issue Of Debentures Online Test Set B

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Question 1

Question

Which of the following is true with regard to 10% Debentures issued at a discount of 20%

	Answer
	Issue price and the carrying amount of debentures are equal
	At the time of redemption, the debenture holder will be paid the issue price
	The carrying amount of debentures gets reduced each year at a rate of 20%
	The face value and the carrying amount of debentures are equal.