Debenture A/c is a Personal A/c as it reflects the liability of the company towards debentureholders'.

Debenture is a type of financial instrument that represents a long-term borrowing by a company or organization. In accounting, it is classified under the category of liabilities.

Liabilities are obligations that a company owes to others and are classified into three categories: current liabilities, long-term liabilities, and contingent liabilities. Debenture falls under the long-term liabilities category, along with other types of borrowings such as loans, bonds, and mortgages.

The classification of debenture as a liability is further explained below:

1. Nature of Debenture: Debenture is a financial instrument that represents a long-term borrowing by a company or organization. As it is a borrowing, it represents an obligation that the company owes to the debenture holders.

2. Liability: A liability is an obligation that a company owes to others. Since debenture represents a long-term borrowing, it is classified as a long-term liability.

3. Accounting Treatment: In accounting, debenture is recorded as a liability on the balance sheet of the company. It is shown under the head of long-term liabilities along with other types of long-term borrowings.

4. Interest Expense: When a company issues debentures, it is required to pay interest on the amount borrowed. This interest expense is recorded in the income statement of the company and reduces its net income.

In conclusion, debenture is classified as a long-term liability in accounting and is recorded on the balance sheet under the head of long-term liabilities. As a financial instrument, debenture represents an obligation that a company owes to the debenture holders.