Accountancy, asked by umesh12rr, 5 months ago


Define collateral security. What entry may be passed when
debentures are issued as collateral Security.

Answers

Answered by Riyasharma45
6

Answer:

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Answered by yachnasinghal22
1

Answer:

The term collateral refers to an asset that a lender accepts as security for a loan. Collateral may take the form of real estate or other kinds of assets, depending on the purpose of the loan

Explanation:

KEY TAKEAWAYS

Collateral is an item of value used to secure a loan.

Collateral minimizes the risk for lenders.

If a borrower defaults on the loan, the lender can seize the collateral and sell it to recoup its losses.

Hope its help you

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