MyQuestionIcon

1

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

Issue of Debentures as Collateral Security

When debentur...

Question

When debentures are issued as collateral security, no amount is received for debentures.

A

True

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

B

False

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

Open in App

Solution

The correct option is A True
When loan is taken from bank or financial Institution, debentures may be issued as collateral security. Any cash is not received against these debenture. On default of repayment of loan, loan may be converted into debentures by bank/financial institution.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Give the meaning of 'Debentures issued as Collateral Security'.

Q. When debentures are issued as collateral security, the final entry for recording the transaction in the books is ________________.

Q. Issue of debentures as collateral securities' means issue of such debentures as _________.

Q. When debentures are issued as collateral security, which of the following treatment can be adopted?

Q. When debenture are issued as collateral security, the final entry for recording the transaction in the books is _______.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Undersubscription

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Issue of Debentures as Collateral Security

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon