Accountancy Part AIssue and Redemption of Debentures

“These debentures do not have a specific charge on the assets of the…

“These debentures do not have a specific charge on the assets of the company”. Name the type of debenture being highlighted in this statement.

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Unsecured debentures

NCERT (2026-27 edition):
From the Point of view of Security – “… Unsecured Debentures: Unsecured debentures do not have a specific charge on the assets of the company. However, a floating charge may be created on these debentures by default. Normally, these kinds of debentures are not issued.”