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Question

Debentures are shown in the balance sheet of a company under the item ______________.

A
Secured loans
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B
Unsecured loans
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C
Current Liabilities
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D
None of the above
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Solution

The correct option is A Secured loans
Debentures are shown in the balance sheet of the company under the item Secured loans. Debentures are usually secured against the assets of the company. In case of debentures they are not secured by providing a collateral or security. These debentures have a charge on the assets.

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