In case involving issue of debentures as collayetal, if not mentioned, we pass journal entry by default or not?
Dear Student
If debentures are issued as collateral security, there are two ways to record it,
1. By not passing any journal entry, i.e just giving a note below the loan received.
2. By passing the journal entry through Debenture suspense A/c.
Now, You may follow any of the above methods, but it is recommended to pass the journal entry as it would resemble better presentation of the transaction occurred.
Hope this helps
Keep posting
Regards
If debentures are issued as collateral security, there are two ways to record it,
1. By not passing any journal entry, i.e just giving a note below the loan received.
2. By passing the journal entry through Debenture suspense A/c.
Now, You may follow any of the above methods, but it is recommended to pass the journal entry as it would resemble better presentation of the transaction occurred.
Hope this helps
Keep posting
Regards