5% Debentures of Rs 100 are issued at a 10% discount.
So,the face value here is Rs 100
But what is the book value? Is it Rs 100 or Rs 90?
What is actually book value?
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Book Value and Face value
Replies (2)
I think u r asking for at what debentures recorded in books of accounts.
it is face value of Debenture.
Bank A/c Dr
Discount on issue of debenture A/c Dr
To Debenture A/c
Book value means at which any assets or liabilities is initially recorded in books of accounts as per historical cost concept.
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