Which of the following transactions involve issuing debentures for a consideration other than cash?(A) Issued to a bank as additional/collateral security(B) Issued to a vendor for asset purchase(C) Issued to the general public for subscription(D) Issued to a creditor to settle outstanding dues(E) Issued for cash via public offerChoose the correct answer from the options given below:
- A(C), (B), (A) and (E) only
- B(A), (B) and (D) only
- C(A), (D) and (C) only
- D(B), (D) and (E) only
Solution & Step-by-step Explanation
* Consideration Other than Cash applies when no cash inflows occur during the issue of debentures. Examples include issuing debentures to banks as collateral security (A), to vendors for purchasing assets/businesses (B), and to creditors to settle existing debts (D).Options (C) and (E) are transactions made to raise cash.