When debenture is issued as collateral security, the final entry for recovered the collateral debenture in books is :

CS Executive · Corporate and Management Accounting · PYQS · December 2021
When debenture is issued as collateral security, the final entry for recovered the collateral debenture in books is :
(A) Dr Cash a/c, Cr Debenture a/c
(B) Dr. Debenture Suspense a/c, Cr Cash a/c
(C) Dr. Debenture Suspense a/c, Cr Debenture a/c
(D) Dr Cash a/c, Cr Debenture Suspense a/c

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Corporate Accounting

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