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State to Whether the Following Statement is True/False.

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Question

State to whether the following statement is True/False.
The acknowledgement of debt under common seal of company in termed as share.

Options

  • True

  • False

MCQ
True or False
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Solution

False

Explanation:
 The acknowledgement of debt under the common seal of a company is termed as debenture. Debentures carry a fixed rate of interest that is a charge against company profits. Debentures are paid back after the expiry of the specified term for which they were issued.

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Chapter 11: Company Accounts Part - 2 (Accounting for Debentures) - Exercise 4 [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 4 | Q 2 | Page 373

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