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Give the Meaning of ‘Debenture’? - Accountancy

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Question

Give the meaning of Debenture?

Solution

A debenture is a written debt instrument issued in the form of a certificate containing provisions regarding the repayment of the principal sum after a fixed period of time and payment of interest at regular intervals.

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Meaning and Concept of Debentures
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2013-2014 (March) Delhi Set 1

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The debenture holder is owner of the company.


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What is meant by redemption of Debentures?


Write one word/term/phrase which can substitute the following
The acknowledgment of debt under common seal of company.


Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.


Write one word/term/phrase which can substitute the following
The debentures which are converted in to shares.


Write one word/term/phrase which can substitute the following
The debentures which are not converted into shares.


Write one word/term/phrase which can substitute the following
The debentures which are registered in the register of company.


Write one word/term/phrase which can substitute the following
The debentures which are transferred by way of delivery.


Select most appropriate alternative from those given below
__________ is acknowledgment of debt under common seal of company.


Select most appropriate alternative from those given below :
__________ debentures which are not secured against any charge on asset of the company.


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The debenture holder is owner of the company.


State to whether the following statement is True/False.
Unsecured debentures are safer than secured debentures.


Mahakali Co. Ltd. Chandrapur issued 1,000, 12% debentures of  Rs.100 each, payable Rs. 20 on application and the balance on allotment. Applications were received for 1,500 debentures, out of which, applications for 900 were allotted fully, applications for 400 were allotted 100 debentures and remaining were rejected. All dues received.
Journalise the transactions and also show Balance Sheet.

Answer the question.
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A Debenture issued by a company by creating a fixed or a floating charge on the company's assets is known as ______.


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