Accountancy, asked by mansitayal8646, 11 months ago

Debentures is liability then why given as collateral security

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Answered by Anonymous
1

Answer:

Issue of Debentures as Collateral Security. There are certain conditions when a company does not have enough funds to pay back its loan amount. In such situations, they generally end up providing or issuing debentures. Hence, such issuing of debentures is like collateral security for the primary debt or loan.

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