Accountancy Part AIssue and Redemption of Debentures

Debentures which can be transferred by way of delivery and the compan…

Debentures which can be transferred by way of delivery and the company does not keep any record of the debentureholders. Interest on debentures is paid to a person who produces the interest coupon attached to such debentures. Identify the type of debenture being discussed in above statement.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Bearer Debentures

NCERT (2026-27 edition):
From the view Point of Registration – “… Bearer Debentures: Bearer debentures are the debentures which can be transferred by way of delivery and the company does not keep any record of the debentures Interest on debentures is paid to a person who produces the interest coupon attached to such debentures.”