MyQuestionIcon

1

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

Issue of Debentures as Collateral Security

The lender is...

Question

The lender is entitled to interest on the debentures issued as collateral security. State True or False

A

False

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

B

True

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

Open in App

Solution

The correct option is A
False

The lender is entitled to interest only on the amount of loan, but not on the debentures issued as collateral security.

Suggest Corrections

thumbs-up

0

Similar questions

Q. The lender is entitled to only on the amount of loan, but not on the debentures issued as collateral security.

Q. S. Singh Limited obtained a loan of ₹ 5,00,000 from State Bank of India @ 10% p.a. interest. The company issued ₹ 7,50,000, 10% Debentures of ₹ 100 each in favour of State Bank of India as Collateral Security. Pass necessary Journal entries for the above transactions:
(i) When company decided not to record the issue of 10% Debentures as Collateral Security.
(ii) When company decided to record the issue of 10% Debentures as Collateral Security.

State the meaning of 'Debentures issued as a Collateral Security'.

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

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

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