When a company borrows money from investing people it
issues bonds which is stamped with official seal is called
as debentures
types of debentures:
security point of view
recording point of view
performance pont of view
conversion point of view
priorty point of view
From different point of view:
Redemption : Redeemable and irredeemable
Security : mortgage debenture and naked or simple debentures
Record: registered debenture and bearer debentures
Priority: first debentures and second debentures
Convertibility: Convertible and Non convertible
It is a document issued by a company indicating its
indebtedness.
First Debentures, Second Debentures, Bearer/Unregistered
Debentures, Registered Debentures, Redeemable Debentures,
Irredeemable/Pertual Debentures, Secured Debentures,
Unsecured Debentures/Naked Debentures, Convertible and non
Convertible Debentures
Debenture is instrument unless otherwise
specified,carry security for the investors and hence the
company has to make proper arrangement to extend assurances
and comply with lagal requirements in favour of the
investors of the said securities.
debenture are cumulative,non cumulative,
redeemable,irredeemable,
Convertable,nonconvertable,
mortgage,registed
N N
SALES: DEPT A 150000
DEPT B 2500 100000
newspaper 1000
rates 500
elect 250
salary 10000
stock 1/4/92 :dept A 2300
DEPT B -
stock :1/4/93 dept A 1200
dept B 700
newspaper 300
prepare trading profit and loss account.
thanx