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.
Answer & explanation
Correct answer: option 1
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.