Meaning of Debentures

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Meaning of Debentures: Overview

This topic covers concepts such as, Meaning of Debentures etc.

Important Questions on Meaning of Debentures

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The interest rate on debentures is typically:

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Which document is issued to a debenture holder as evidence of the debt?

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Debenture holders are considered as:

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Which of the following is NOT a characteristic of a debenture?

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What is the primary purpose of issuing debentures?

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What is the process for journalizing the transactions of debenture issuance when interest is payable periodically?

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How is the Debenture Redemption Reserve created and utilized?

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What journal entries are required when debentures are issued for the purchase of assets at par and at a premium?

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How is the redemption of debentures handled when it is done by conversion into shares?

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What is the correct accounting treatment when debentures are issued as collateral security?

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How should a company record the issue of debentures when they are issued at a discount and redeemed at a premium?

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How are debentures recorded in the journal when issued at par and redeemed at par?

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What is meant by the conversion of debentures? How is this conversion carried out?

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Can a company purchase its own debentures in the open market? Explain.

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How is a Sinking Fund created for the redemption of debentures?

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What are the guidelines of SEBI for creating a Debenture Redemption Reserve?

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What is the difference between redemption of debentures out of capital and out of profits?

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What are the different terms for the issue of debentures with reference to their redemption?

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What does ‘Debenture Issued as Collateral Securities’ mean? What is the accounting treatment for debentures issued in this way?

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How do debentures differ from shares? Why is a debenture known as loan capital?