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What is the nature of debenture suspense account?
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
Is debenture interest paid shown in balance sheet?
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
What is the journal entry to record payment of accrued interest?
[Debit] Interest expense xxxx [Credit] Interest payable xxxx [Debit] Interest payable xxxx [Credit] Cash / bank xxxx
How do you treat interest on advance payment of tax in financial statements?
there is no interest on advance payment of tax
How does one collect their accrued interest?
Accrued interest is obtained when the payment is received to the borrower. When the payment is received, interest is then realized and deposited into your account.
What is the journal entry for accrued debenture interest?
Interest A\c Dr Accured debenture Cr
What is a debenture stock trust deed?
It is a formal legal document/contract that outlines the terms of the debenture issue between issuer and holders. States concerns to maturity date, interest rate, interest payment , protective provisions and any other terms & conditions between issuer & holders....
What is debenture interest?
Interest payable or paid to lenders on debentures.
Why debenture interest is expense but not within operating expense?
Issuance of debendutres is not an operating activity that's why interest on debenture is also a non operating expense
What is the nature of debenture suspense account?
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
Income earned by a debenture holder is called?
interest
How do you treat debenture interest in final accounts?
is it a liability
Why debentures are not forfeited?
debenture is a loan to company and its face value will be higher moreover it carries fixed interest which is charge against profits.so there is no chance from the side of debenture holder for non payment of calls after repeated notices from the company. from the view point of company it cannot forfiet a debenture and treat it as a capital profit because they are not owners is this explanation coreect for that question?
Is debenture interest paid shown in balance sheet?
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
What would you pay for a 100000 debenture bond that matures in 15 years and pays 10000 a year in interest if you wanted to earn a yield of 8 percent?
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
What is zero interest debenture?
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).
How do you post debenture interest to balance sheet?
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%).
