Accountancy Part AIssue and Redemption of Debentures

Which of the following debentures do not have a specific charge on th…

Which of the following debentures do not have a specific charge on the assets of the company?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Unsecured

NCERT (2026-27 edition):
From the Point of view of Security – “… Unsecured Debentures: Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default.”