Chapter 2: Accounting for Debentures

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

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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.


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