of debentures refer to extinguishing or discharging the liability on account of debentures as per the terms of issue.

Issue

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Redemption

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Allotment

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Solution

The correct option is B Redemption
Redemption of debentures refers to the repayment of these debentures by the company to the debenture holders. So the company will discharge its liability and remove it from the balance sheet.

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Similar questions

___of debentures refers to extinguishing or discharging the liability on account of debentures in accordance with the terms of issue.

Explain the different terms for the issue of debentures with reference to their redemption.

On the issue of debentures as collateral security, which account is credited?

Which account needs to debited for writing off discount on issue of debentures over the span of debentures?

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