Question

Which of the following statement is false?

Options

• Debenture is written instrument acknowledging a debt under the common seal of the company.

• Debenture is a part of owned capital.

• The payment of interest on debentures is a charge on the profits of the company.

• Redeemable debentures are those debentures which are payable on the expiry of a specific period.

Answer 1

Debenture is a part of owned capital.

Explanation:

Debenture is a type of borrowed money rather than owned capital.