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Debenture interest is typically paid to the debenture holders, who are creditors of the issuing company. This interest represents the cost of borrowing for the company and is usually paid at predetermined intervals, such as annually or semi-annually. The interest payments are considered an expense for the company, reducing its taxable income, while providing a fixed income stream for the investors holding the debentures.
What else can I help you with?
What is the journal entry for accrued debenture interest?
Interest A\c Dr Accured debenture Cr
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
How do you treat debenture interest in final accounts?
is it a liability
Income earned by a debenture holder is called?
interest
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
How do you record payment of debenture interest?
To record the payment of debenture interest, you need to make a journal entry that debits the interest expense account and credits the cash account. This reflects the outflow of cash for the interest payment. Additionally, if the interest is accrued but not yet paid, you may also need to adjust the accrued interest payable account accordingly. Always ensure that the amount recorded matches the terms specified in the debenture agreement.
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%).
What is the face value of a debenture?
The face value of a debenture, also known as its par value or principal amount, is the amount that the issuer agrees to pay the debenture holder at maturity. It is typically the original investment amount and is used to calculate interest payments, which are usually expressed as a percentage of the face value. For example, if a debenture has a face value of $1,000 and an interest rate of 5%, the holder would receive $50 in interest annually until maturity.
What is the treatment of Interest on Debentures Accrued but not due in the Co's Balance Sheet?
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.
