Multiple choice

Which of the following statements is false?

  1. At maturity, debenture holders get back their money as per the term sand conditions of redemption

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

  3. In company's balance sheet, debentures are shown under secured loans

  4. Interest on debentures is charged against profit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debentures is a type of secured loan taken by the company and the debentures are issued at par, or at discount or on premium and the amount is to be paid back on maturity.Generally, a debentureholer will be paying the call money due to receive interest for the same. Debentures are not forefeited due to non payment of calls.

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