Match List-I with List-II List-I List-II (A) Debenture of Rs 100 issu…

Match List-I with List-II

List-I	List-II
(A) Debenture of Rs 100 issued at Rs 110.	(I) Debenture as collateral security.
(B) Debenture of Rs 100 issued at Rs 100.	(II) Debenture issued at Premium
(C) Debenture of Rs 100 issued at Rs 90.	(III) Debenture issued at par.
(D) Debenture issued to the lender in addition to some other assets already pledged.	(IV) Debenture issued at Discount.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A)-(II), (B)-(III), (C)-(IV), (D)-(I)

A debenture’s issue is described by comparing its issue price with its face (nominal) value; an issue made only as extra security for a loan is a separate case.

(A) Debenture of Rs 100 issued at Rs 110. — this matches (II) Debenture issued at Premium. The price is more than the nominal value; the extra Rs. 10 is the premium, credited to Securities Premium Reserve.

(B) Debenture of Rs 100 issued at Rs 100. — this matches (III) Debenture issued at par. The issue price is equal to the face value.

(C) Debenture of Rs 100 issued at Rs 90. — this matches (IV) Debenture issued at Discount. The price is below the nominal value; the Rs. 10 short is the discount on issue.

(D) Debenture issued to the lender in addition to some other assets already pledged. — this matches (I) Debenture as collateral security. Such debentures are a secondary or additional security; the lender uses them only if the primary security falls short.

NCERT (2026-27 edition):
Issue of Debentures for Cash – “Debentures are said to be issued at par when their issue price is equal to the face value.”

NCERT (2026-27 edition):
Debentures issued at Premium – “A debenture is said to be issued at a premium when the price charged is more than its nominal value. For example, the issue of Rs. 100 debentures for Rs. 110, (Rs. 10 is being the premium).”

NCERT (2026-27 edition):
Issue of Debentures at a Discount – “When a debenture is issued at a price below its nominal value, it is said to be issued at a discount. For example, the issue of Rs. 100 debentures at Rs. 95, Rs. 5 being the amount of discount.”

NCERT (2026-27 edition):
Issue of Debentures as a Collateral Security – “… In such situation, the company may issue its own debentures to the lenders in addition to some other assets already pledged. Such an issue of debentures is known as ‘Debentures issued as Collateral Security’.”