#accounting entry

Issue and Redemption of Debentures

In case of the issue of debentures as collateral security for a loan from the bank which account will be debited :

Debentures Suspense Account debenture correct; interest charge sinking fund redemption per AS.

Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.

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Issue and Redemption of Debentures

Loss on issue of debentures is recorded as a:

Miscellaneous expenditure debenture correct; interest charge sinking fund redemption per AS.

Ref: NCERT Accountancy Class XII Chapter 7 Debentures explains issue redemption interest sinking fund accounting treatment Companies Act provisions clearly.

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Admission of a Partner

In case of admission of a partner, unrecorded asset and unrecorded liability are to be recorded in:

Revaluation a/c and Balance sheet correct per NCERT Admission of a Partner; matches accountancy concept accurately.

Ref: NCERT Accountancy Class XII Chapter 3 Admission of Partner explains goodwill valuation sacrificing ratio revaluation reserves adjustment accounting treatment.

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Partnership Accounts 1

When realization expenses are paid by the firm on behalf of a partner, such expenses are debited to:

Partner’s Capital Account partnership correct; deed provisions interest capital drawings as per Act.

Ref: NCERT Accountancy Class XII Chapter 2 Partnership Accounts explains partnership deed interest capital drawings profit appropriation guarantee provisions.

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