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?
Dinesh Kumar Agarwal
(Article clerk)
(117 Points)
Replied 09 October 2010
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
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 09 October 2010
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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