Archive | Debentures

Difference between Debenture and Shares

The upcoming discussion will update you about the difference between Debenture and Shares. (i) Creditor ship Security v. Ownership Security: Whereas a debenture is a creditor ship security, a share is an ownership security. It means that a debenture-holder is a creditor of the company, while a shareholder is a part-owner of the company. It […]

Issue of Debentures: Meaning, Expenses and Writing Off Discount

In this article we will discuss about the Issue of Debentures:- 1. Meaning of Issue of Debentures 2. Expenses on Issue of Debentures Account 3. Debenture Redemption Reserve 4. Collateral Security 5. Writing Off Discount. Contents: Meaning of Issue of Debentures Expenses on Issue of Debentures Account Debenture Redemption Reserve Issue of Debentures as a […]

Debenture Redemption Fund Insurance Policy (Journal Entries)

In this article we will discuss about the Journal Entries on Debenture Redemption Fund Insurance Policy. To get money for the redemption of debentures after a specified period of time, a company may take an insurance policy. It is called Debenture Redemption Fund Insurance Policy. Entries will be passed as follows:— Illustration 1: On 1st […]

Redemption of Debentures (With Illustrations)

In this article we will discuss about the Redemption of Debentures:- 1. Introduction to Redemption of Debentures 2. Ex-interest Price and Cum-interest Price 3. Convertible Debentures 4. Sinking Fund. Introduction to Redemption of Debentures: Debentures are invariably redeemable. The Companies Act has not laid down any conditions for the redemption of debentures. Of course, the […]

Debenture Types: Top 13 Types of Debenture

This article throws light upon the top thirteen types of debenture. The types are:  1. Simple, Naked or Unsecured Debentures 2. Secured or Mortgaged Debentures 3. Bearer Debentures 4. Registered Debentures 5. Redeemable Debentures 6. Irredeemable Debentures 7. Convertible Debentures 8. Zero Interest Bonds / Debentures 9. Zero Coupon Bonds 10. First Debentures and Second […]

Debenture: Advantages and Disadvantages

After reading this article you will learn about the Advantages and Disadvantages of Debenture. Advantages of Debenture: Debentures offer a number of advantages both to the company as well as investors. These are discussed as below: (a) Advantages to the Company: The company has the following main advantages of using debentures and bonds as a […]

Top 5 Features of Debenture | Finance Sources

This article throws light upon the top five features of debenture. The features are: 1. Maturity 2. Claims on Income 3. Claims on Assets 4. Control 5. Call Feature. Feature # 1. Maturity: Although debentures provide long-term funds to a company, they mature after a specific period. Generally, the debentures are to be repaid at […]

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