Question

Debentures ______ forfeited for non-payment of call monies.

• A. Can be
• B. Cannot be
• C. Both (A) & (B)
• D. None of the above

Answer 1

The correct option is B Cannot be

Debenture is a loan to company and its face value will be higher moreover it carries fixed interest which is charge against profits, so there is no chance from the side of debenture holder for non payment of calls after repeated notices from the company it cannot forfeit a debenture and treat it as a capital profit because they are not owners.