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Question
Write one word/term/phrase which can substitute the following
The acknowledgment of debt under common seal of company.
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Solution
Debenture
Explanation: Debentures are debt funds issued in the form of certificates under the common seal of the company. The certificates contain the details about rate of interest for the specified period, repayment of principal and the schedule of interest payments.
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The debentures which are convertible into shares.
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The debentures of which the payment is not made until the winding up of company.
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The debentures which are converted in to shares.
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Unsecured debentures are safer than secured debentures.
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Match the items given in Column I with the headings/subheadings (Balance sheet) as defined in Schedule III of Companies Act 2013.
| Column I | Column II | ||
| (I) | Loose Tools | (a) | Intangible fixed assets |
| (II) | Patents | (b) | Other current assets |
| (III) | Prepaid insurance | (c) | Long term Borrowings |
| (IV) | Debentures | (d) | Inventories |
| (V) | Machinery | (e) | Tangible Fixed assets/Property, Plant and Equipment |
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