Question

What is the nature of Debenture Application Account?

• A. Real A/c
• B. Personal A/c
• C. Nominal A/c
• D. None of these

Hint:

Application money (for shares or debentures) is always treated as liability till allotment → Personal A/c.

Answer 1

The Correct Option is B

Step 1: Nature of account.
Debenture application money is collected from applicants, and until allotment, it is considered as liability of the company towards applicants.
Step 2: Account type.
Personal Account → accounts related to persons or entities to whom the company owes money.
Step 3: Conclude.
Hence, Debenture Application A/c is a Personal A/c.
Final Answer: \[ \boxed{\text{Personal A/c}} \]