Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Which type of debentures are payable on the expiry of the specific period either in a lump sum or in Instalments during the lifetime of the company?
Options:
Irredeemable Debentures
Convertible Debentures
Redeemable Debentures
Zero Coupon Rate Debentures
Correct Answer:
Redeemable Debentures
Explanation:
Redeemable debentures are those which are payable on the expiry of the specific period either in lump sum or in Instalments during the life time of the company. Debentures can be redeemed either at par or at premium.