MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Difference between Shares and Debentures

Debenture hol...

Question

Debenture holders are termed as __________ of the company.

A

debtors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

creditors

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

traders

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

consumers

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B creditors
The debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date. Debenture holders are, therefore,termed as creditors of the company.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Attempt the following
State the position of debenture holders in a company.

Q. Which of the following statement is true?
a. A debenture holder is an owner of the company.
b. A debenture holder can get his money back only on the liquidation of the company.
c. A debenture issued at a discount can be redeemed at a premium.
d. A debenture holder receives interest only in the event of profit.

Q. The debentures which are duly recorded in the register of debenture holders maintained by the company and which can be transferred only through a regular instrument of transfer are called as _________ debentures.

Q. When debentures are repaid ___ a/c is debited and ___ is credited.

Q. Select most appropriate alternative from those given below :

The interest on debentures is transferred to __________.
a) Debentures A/c
b) Profit of Loss A/c
c) Balance Sheet
d) Debenture holders A/c

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

What is a Debenture?

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Difference between Shares and Debentures

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon