In this article we will discuss about:- 1. Meaning of a Debenture 2. Features of a Debenture 3. Classes 4. Debenture and Debenture Stock. Meaning of a Debenture: Generally, companies, for their expansion and further development, may require funds. Funds flow in from the internal and external sources i.e. the owners' and outsiders' contribution. Internal fund of a company consists [...]
In this article we will discuss about the accounting entries relating to debenture trustees, explained with the help of an illustration. Generally, to look after the interest of the debenture-holders, certain persons are elected as trustees by the debenture-holders. Alternatively, the names of trustees may be mentioned in the prospectus inviting subscription for debentures of the company. The guide-lines issued [...]
In this article we will discuss about the accounting entries for issue of debentures. (A) Issue of Debenture for Cash: The issue procedure with regard to debentures is the same as that of shares. The amount due on debentures may be paid in installments, such as, Application, Allotment and Calls. When debentures are issued at premium, the amount of premium [...]