Day: January 1, 2022

Quite frequently debenture are issued as collateral security to creditors, bankers or other parties. The nominal value of the debentures deposited as security generally exceeds the amounts of the loan by 10 or 20 per cent. In such a case, Read More …

A company may issue debentures previously redeemed, either by reissuing the debentures or by issuing others in their place unless the Articles or a contract or resolution, recorded at a General Meeting, or terms of issue or some other act Read More …

The payment of interest should be vouched with the acknowledgment of the debenture holders, endorsed warrants and in the case of bearer debentures, with the coupons surrendered. The total amount paid should be reconciled with the total amount due and Read More …

The provision for the premium payable on redemption of debentures may be made in either of the following two ways : The total amount of premium payable on redemption may be debited to an account denominated as “Loss on Issue Read More …

Debentures may be issued at par or at a premium or at a discount. When these are issued at a premium, the amount of premium collected should be credited to Premium on Debenture Account. Since it would be a capital Read More …

Allotment of Debentures As in the case of shares, in the case of debentures also, it is necessary for the auditor to verify whether allotment was made having regard to the terms and conditions contained in the prospectus or the Read More …