When a company purchases its own debentures as an investment, ‘own debentures account’ is debited with:

The correct answer is: C. Amount paid for such debentures.

When a company purchases its own debentures as an investment, the own debentures account is debited with the amount paid for such debentures. This is because the company is acquiring an asset, and assets are always recorded on the debit side of the ledger. The face value of the debentures is not relevant, as the company is not purchasing them to redeem them, but rather to hold as an investment. The paid-up value of the debentures is also not relevant, as this is the amount that the original investors paid for the debentures, and the company is not acquiring them from the original investors.

Here is a brief explanation of each option:

• Option A: Paid-up value of debentures. The paid-up value of debentures is the amount that the original investors paid for the debentures. This is not relevant when a company purchases its own debentures as an investment, as the company is not acquiring them from the original investors.
• Option B: Face value of debentures. The face value of debentures is the amount that is printed on the face of the debenture. This is also not relevant when a company purchases its own debentures as an investment, as the company is not purchasing them to redeem them, but rather to hold as an investment.
• Option C: Amount paid for such debentures. This is the correct answer, as it is the amount that the company actually paid for the debentures.
• Option D: Amount equal to the difference between the face value of the debentures and the amount paid for such debentures. This is not the correct answer, as the company is not purchasing the debentures to redeem them, but rather to hold as an investment.