English

State whether the following statement is True (T) or False (F): Debenture is a part of owned capital.

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Question

State whether the following statement is True (T) or False (F):

Debenture is a part of owned capital.

True or False
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Solution

This statement is false.

Explanation:

A debenture represents borrowed capital (or debt) of a company, not owned capital.

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Chapter 2: Issue and Redemption of Debentures - Intext Questions [Page 109]

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NCERT Accountancy Company Accounts and Analysis of Financial Statements [English] Class 12
Chapter 2 Issue and Redemption of Debentures
Intext Questions | Q 1. | Page 109
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