The debentures of a company are a movable property, transferable in the manner provided by the Articles.
Interest A\c Dr Accured debenture Cr
The debentures of a company are a movable property, transferable in the manner provided by the Articles.
Interest payable or paid to lenders on debentures.
Issuance of debendutres is not an operating activity that's why interest on debenture is also a non operating expense
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
interest
is it a liability
if Debenture interest is paid already then it will only show in income statement while if debenture interest is payable in future then it will only comes balance sheet, while if part of interest paid and part of interest payable then portion of paid amount will be shown in income statement while remaining amount will be shown in balance sheet as liability
A term debenture have value of Rs.100/-(fore one debenture).thus the value of 100000 debenture is equal to 10 crore.The interest will be Rs.800000/- per year
Issue of the zero interest debenture does not carry any explicit rate of interest.The difference between th face value and the purchase price is the return to the investor(lender).
If on the Trial Balance you have for example: 10% Debenture £300 then on the balance sheet you will put on the Non-Current Liabilities Section 10% Debenture £300 and on the Current Liabilities Accrued Interest £30 (£300*10%).
In the Co's Balance Sheet: Interest on Debenture Accrued but not due is to be taken under the head Current Liabilities. Where as Interest on Debenture Accrued and Due is taken under the head Secured Loan.