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A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.

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3w ago

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Examine Debenture can be redeemed only out of capital?

No Debentures can not be redeemed out of capital only. Gov of India and SEBI has indirectly placed restrictions on redemption of debentures. Now it is compulsory to create Debenture Redemption Reserve at-least 50% of the debentures issued.


How can debenture be redeem?

Debentures can be redeemed in several ways, typically at maturity when the issuer repays the principal amount to bondholders. They may also be redeemed early through a call option, allowing the issuer to buy back the debentures before the maturity date at a predetermined price. Additionally, some debentures may have provisions for conversion into equity or other securities, which can effectively serve as a form of redemption. The specific terms for redemption are outlined in the debenture's indenture agreement.


What is a debenture certificate?

it is a document that serve as evidence of a debenture for a debenture share holder


What is debenture certificate?

it is a document that serve as evidence of a debenture for a debenture share holder


Why debenture redemption reserve is transfer to general reserve?

When debentures are redeemed payment is made from a reserve which is created at the time of purchase of such debentures,therefore at the time of payment first it is transferred to general reserve then as it is expenditure to company.


Solve questions of debenture in advance accounting?

what is debenture


Is debenture a current asset?

No. Debenture is a form of liability for a business.


How does a term loan differ from a non invertible debenture?

Noninvertible debenture


Is debenture holder a customer of the company?

NO,debenture holder is the creditor of the company


What is the Legal definition of All Assets Debenture?

what is an all assets debenture


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.


What is the journal entry for accrued debenture interest?

Interest A\c Dr Accured debenture Cr