Accountancy Part AIssue and Redemption of Debentures

__________ debentures refer to those debentures where a charge is cre…

__________ debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Secured

NCERT (2026-27 edition):
From the Point of view of Security – “(a) Secured Debentures: Secured debentures refer to those debentures where a charge is created on the assets of the company for the purpose of payment in case of default.”