Match List-I with List-II
| List-I | List-II | ||
| (A) | Debentures issued for consideration other than cash | (I) | A company issues debentures at a price lower than their face value. |
| (B) | Debentures issued as Collateral Security | (II) | A company purchases assets from vendors and make payment by debentures |
| (C) | Debentures issued for cash | (III) | The company may issue its own debentures to the lenders in addition to some other assets already pledged |
| (D) | Debentures issued at discount | (IV) | A company invite the public to apply for debentures by issue of prospectus |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
Each kind of issue is named after what the company gets for its debentures, or the price at which it issues them.
(A) Debentures issued for consideration other than cash — this matches (II) A company purchases assets from vendors and make payment by debentures. The vendor is paid in debentures and not in cash.
(B) Debentures issued as Collateral Security — this matches (III) The company may issue its own debentures to the lenders in addition to some other assets already pledged. They are an additional security for a loan, over and above the main security.
(C) Debentures issued for cash — this matches (IV) A company invite the public to apply for debentures by issue of prospectus. The public applies on the basis of the prospectus and pays in cash.
(D) Debentures issued at discount — this matches (I) A company issues debentures at a price lower than their face value. The discount is the gap between the face value and the lower issue price.
NCERT (2026-27 edition):
NCERT (2026-27 edition): |
