Which of the following statements is false ........

General Accounting Principles Accounting For Debentures

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Which of the following statements is false?

At maturity, debenture holders get back their money.

Debentures can be forfeited for non-payment of call money.

In company’s balance sheet, debentures are shown under the head Long term Borrowings.

Interest on debentures is a charge against profits

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Explanation:

Debenture is a loan to company and its face value will be higher moreover it carries fixed interest which is charge against profits, so there is no chance from the side of debenture holder for non payment of calls after repeated notices from the company it cannot forfeit a debenture and treat it as a capital profit because they are not owners.