Accountancy Part AIssue and Redemption of Debentures

Which of the following is a written instrument acknowledging a debt u…

Which of the following is a written instrument acknowledging a debt under the common seal of the company?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Debenture

NCERT (2026-27 edition):
Meaning of Debentures – “Debenture: The word ‘debenture’ has been derived from a Latin word ‘debere’ which means to borrow. Debenture is a written instrument acknowledging a debt under the common seal of the company.”