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Meaning of Debentures

Which of the ...

Question

Which of the following statements is false

A

At maturity, debenture holders get back their money.

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B

Debentures can be forfeited for non-payment of call money

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C

In company's balance sheet, debentures are shown under the head Long Term Borrowings

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D

Interest on debentures is a charge against profit

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Solution

The correct option is B
Debentures can be forfeited for non-payment of call money

Debentures cannot be forfeited for non-payment of call money.

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Q. Debentures ______________ forfeited for non-payment of call moneys.

Q. Which of the following statement is true?
a. A debenture holder is an owner of the company.
b. A debenture holder can get his money back only on the liquidation of the company.
c. A debenture issued at a discount can be redeemed at a premium.
d. A debenture holder receives interest only in the event of profit.

Q. Under which heads the following items are shown in the Balance Sheet of a company:

(i) Calls-in-Arrears;	(ii) Commission Received in Advance;
(iii) Debentures;	(iv) Stores and Spare Parts;
(v) Land and Building;	(vi) Forfeited Shares Account?

Q. Debentures ______ forfeited for non-payment of call monies.

Q. The debentures which are duly recorded in the register of debenture holders maintained by the company and which can be transferred only through a regular instrument of transfer are called as _________ debentures.

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