Book Value and Face value

Others 654 views 2 replies

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?

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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