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Select Most Appropriate Alternative from Those Given Below :

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Question

Select most appropriate alternative from those given below :
The debenture holder is ___________ of the company.

Options

  • debtor

  • creditor

  • owner

  • supplier

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Solution

The debenture holder is creditor of the company.

Explanation: Debentures are debt funds issued under the common seal of a company. These are issued for a specified period of time with a fixed rate of interest. Debenture-holders are regarded as the creditors of the company, as they have lent the amount to the company as a loan.

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Chapter 11: Company Accounts Part - 2 (Accounting for Debentures) - Exercise 3 [Page 373]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 11 Company Accounts Part - 2 (Accounting for Debentures)
Exercise 3 | Q 10 | Page 373

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