The issue of debenture more than face value is termed on issue of debentures at par.

Question

State to whether the following statement is True/False.

The issue of debenture more than face value is termed on issue of debentures at par.

Options

• True
• False

Answer 1

False

Explanation: Issue of debentures at a price more than their face value is known as ‘issue of debentures at a premium’. The amount of a premium so received is credited to the Securities Premium Account.