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Home Questions TYVAK79T7A
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Issue and Redemption of Debentures

Question:

Match the following-

LIST 1 LIST 2
A) Debenture holder I) Collateral Security
B) Shareholders II) Reserves & Surplus
C) Secondary Security III) Owner
D) Securities Premium Reserve IV) Liability

 Choose the correct answer from the options given below.

Options:

A-IV, B-III, C-I, D-II

A-III, B-IV, C-I, D-II

A-I, B-III, C-IV, D-II

A-IV, B-III, C-II, D-I

Correct Answer:

A-IV, B-III, C-I, D-II

Explanation:

The correct answer is option 1- A-IV, B-III, C-I, D-II.

LIST 1 LIST 2
A) Debenture holder IV) Liability
B) Shareholders III) Owner
C) Secondary Security I) Collateral Security
D) Securities Premium Reserve II) Reserves & Surplus

 

* A ‘share’ represents ownership of the company whereas a debenture is only an acknowledgment of Debt. A share is a part of the owned capital whereas a debenture is a part of borrowed capital.

* A collateral security may be defined as a subsidiary or secondary or additional security besides the primary security when a company obtains a loan or overdraft from a bank or any other financial Institution.

* Securities Premium Reserve is shown under the major head shareholders fund under subhead reserves and surplus.

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