Question

Which of the following is a written instrument acknowledging a debt under the common seal of the company?

• A. Debenture
• B. Equity Share
• C. Preference share
• D. Bank Draft

Hint:

A debenture is a company's written acknowledgement of debt under its common seal.

Answer 1

The Correct Option is A

Step 1: Split the options into two groups:
Shares (equity and preference) show that a person owns a part of the company. A debenture shows that a person has lent money to the company. A bank draft belongs to banking, not to the company.

Step 2: Use the clue in the question:
The question says "acknowledging a debt". Only a loan document does that. The clue "under the common seal" also points to a company borrowing document.

Step 3: Decide:
The only borrowing document among the options is the debenture.

Final Answer:
Option (1). \[ \boxed{\text{Debenture}} \]