10% debentures of ₹100000 are issued b

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Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:

10% debentures of ₹100000 are issued by the company. What does this 10% mean?

Options:

Amount of owner capital

Amount of borrowed capital

Interest rate on debentures

None of these

Correct Answer:

Interest rate on debentures

Explanation:

It is usual to prefix the rate of interest to the debentures.