A company paid cash in redemption of ₦10,000 debenture.
The accounting entry to record this will be to debit?
Answer Details
The accounting entry to record the payment of ₦10,000 debenture would be to debit the "debenture" account and credit the "cash" account. This is because the company is reducing its liability by redeeming the debenture, which is similar to paying off a loan. The debenture account is credited to show a decrease in the company's liabilities, and the cash account is debited to show the outflow of cash. Therefore, the correct answer is "debenture and credit cash".