Chapter 2: Accounting for Debentures

What are debentures? How are they classified? Learn this and much more in this course on debentures!

Details

Normally, a company issues share capital for the requirement of long term funds. Sometimes, in addition to share capital, if company requires more funds then these funds can be met by loan or borrowed amount. Financially sound companies get long term loan from bank or financial institutions. Mostly instead of borrowing such loan from financial institutions or in addition to borrowing such loans for large investments, company can raise funds from public by issue of securities.

Such a security is popularly known as a debenture or bond.


Curriculum

  • Pg. 112 - Q.4 and Q.5
    28 m 57 s
  • Pg. 112 - Pg. 113 - Q.6, Q.7, Q8, Q9
    31 m 18 s
  • Pg. 113, Q.10, Q.11, Q12
    25 m 2 s
  • Pg. 114- Q. 16 to Q.20
    30 m 2 s
  • Pg.114, Q.21, Q.22
    38 m 39 s
  • Pg. 115 - Q.23, Q.24
    22 m 22 s
  • Pg. 115 - Q.25, Q.26
    12 m 18 s
  • Accounting for Debentures Quiz
    10 questions
  • What is debenture?
    1 m
  • Who is called debenture holder ?
    1 m
  • According to Companies Act, 2013, for what duration can a company issue debentures?
    1 m
  • Under which head 'Securities premium reserve account' appears in the balance sheet?
    1 m
  • What is meant by debenture discount?
    1 m
  • Give the provision for writing off the amount of discount on debentures.
    1 m
  • What is meant by 'Issue of debentures for consideration other than cash' ?
    1 m
  • What is meant by 'Loss on issue of debentures' ?
    1 m
  • What are the arrangements by the company to fulfill the required amount for the redemption of debentures?
    1 m
  • Explain the methods of redemption of debentures.
    1 m
  • Important Questions
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