Redemption of Debenture can be done by many ways. Identify the wrong option.
- ARedemption of Debenture by Payment in Lumpsum
- BRedemption of Debenture by giving tangible Assets
- CRedemption of Debenture by payment in instalments
- DRedemption of Debenture by conversion into shares or new Debentures
Solution & Step-by-step Explanation
Debentures can be legally redeemed via lump-sum cash payouts, annual installment drawings, or converting them into new shares/debentures. Distributing core tangible business assets to discharge debenture liabilities is not a standard or legally recognized mode of redemption.