Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the money borrowed for a pre-specified period. In essence, it represents a loan taken by the issuer who pays an agreed rate of interest throughout the life of the instrument and repays the principal normally, unless otherwise agreed, on maturity. Bonds on the other hand are more secured than debenture. As a debenture holder, you provide unsecured loan (most of the times debentures are unsecured in nature) to the company. Debentures carry a higher rate of interest as the company does not offer any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure in nature.
No. Debenture is a form of liability for a business.
I presume you meant debenture, a debenture is a long term loan taken out by a business
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture
With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.
i guess debenture, since its more riskier!
it is a document that serve as evidence of a debenture for a debenture share holder
it is a document that serve as evidence of a debenture for a debenture share holder
what is debenture
No. Debenture is a form of liability for a business.
Noninvertible debenture
NO,debenture holder is the creditor of the company
what is an all assets debenture
Interest A\c Dr Accured debenture Cr
Debenture Suspense is adjustment account which is prepared at the time of issue of debenture as collateral security to record the collateral issue.
I presume you meant debenture, a debenture is a long term loan taken out by a business
After redemption of debentures, debenture redemption reserve is to be transferred to general reserve.
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture