Match List-I with List-II

List-I	List-II
(Particulars)	(Treatment)
(A) Issue of debentures as collateral security	(I) Vendor Account will be credited
(B) Issue of debenture to Public	(II) Debenture Suspense Account will be debited
(C) Issue of debentures to vendor for purchase of an Asset	(III) Statement of Profit and Loss will be debited
(D) Writting off Discount/Loss on Issue of Debentures	(IV) Bank Account will be debited

Choose the correct answer from the options given below:

Looking at each transaction and its accounting treatment:

(A) Issue of debentures as collateral security:

When debentures are issued as collateral security against a loan, they are not actually issued but held as security. The journal entry is:

Debenture Suspense A/c ... Dr.

To Debentures A/c

Debenture Suspense Account will be debited → Matches with (II)

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(B) Issue of debenture to Public:

When debentures are issued to the public for cash, the entry involves receiving money. The journal entry is:

Bank A/c ... Dr.

To Debenture Application/Debentures A/c

Bank Account will be debited → Matches with (IV)

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(C) Issue of debentures to vendor for purchase of an Asset:

When an asset is purchased and debentures are issued to the vendor as consideration, the entries are:

First: Asset A/c ... Dr.

To Vendor A/c

Then: Vendor A/c ... Dr.

To Debentures A/c

In the first entry, Vendor Account will be credited → Matches with (I)

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(D) Writing off Discount/Loss on Issue of Debentures:

Discount or loss on issue of debentures is a capital loss that needs to be written off. The entry is:

Statement of Profit and Loss A/c ... Dr.

To Discount/Loss on Issue of Debentures A/c

Statement of Profit and Loss will be debited → Matches with (III)

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Correct Matching: (A) - (II), (B) - (IV), (C) - (I), (D) - (III)

Answer: Option 3