In case of collateral security, the lender has the ___right over the debentures until and unless the loan is repaid.
None of these
Absolute
Secondary
Primary
In such a case, the lender has the absolute right over the debentures until and unless the loan is repaid.
The lender is entitled to interest on the debentures issued as collateral security. State True or False
Meghnath Limited took a loan of Rs 1,20,000 from a bank and deposited 1,400, 8% debentures of Rs 100 each as collateral security along with primary security worth Rs 2 lakhs. Company again took a loan of Rs 80,000 after two months from a bank and deposited 1,000 , 8% debentures of Rs 100 each as collateral security. Record necessary journal entries. How will you show the issue of Debentures and Bank Loan in the balance sheet of the company?