Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | State the meaning of ‘Debentures i

Welcome to the NCERT Solutions for Class 12th Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures. This page offers a step-by-step solution to the specific question from Excercise ".$ex_no." , Question 3: state the meaning of lsquo debentures issued as a....
Question 3

State the meaning of ‘Debentures issued as a collateral security’.

Answer

When the security offered by company to take loan is not enough , company offers it's own debentures to the lender as collateral security. On repayment of such loan lender should surrender debentures as well.

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