Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Interest on debentures issued as collateral security is paid on:
Options:
The nominal value of debentures
Face value of debentures
No interest is paid
Paid-up value of debentures
Correct Answer:
No interest is paid
Explanation:
Debentures are issued just as a secondary security so no interest is paid on them by the company.