Question

Which of the following statement is false?

Options

• At maturity, debenture holders get back their money as per the terms and conditions of redemption.

• Debentures can be forfeited for non-payment of call money.

• In the company's Balance Sheet, debentures are shown under secured loans.

• Interest on debentures is a charge against profits.

Answer 1

Debentures can be forfeited for non-payment of call money.

Explanation:

Shares can be forfeited by the firm for non-payment of call money by the shareholders. Debentures cannot be forfeited for non-payment of call money by the shareholders.