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Debenture Certificate

Debentures. Issue of Debentures. Debenture is a document given by a company as evidence of a debt to the holder usually arising out of a loan and most commonly secured by a charge. Debenture Certificate. Debentures. Issue of Debentures. Features of Debentures.

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Debenture Certificate

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  1. Debentures Issue of Debentures Debenture is a document given by a company as evidence of a debt to the holder usually arising out of a loan and most commonly secured by a charge. Debenture Certificate

  2. Debentures Issue of Debentures Features of Debentures A certificate which acknowledges debt of a company Considered as external equity Rate of interest on debenture is specified Mode and period of repayment is fixed

  3. Debentures Types of Debentures Security Records Secured Unsecured Registered Bearer Redemption Coupon Rate Redeemable Irredeemable Specific Coupon Rate Zero Coupon Rate Convertibility Convertible Non Convertible

  4. Debentures Issue of Debentures Issue of Debentures for consideration other than cash Debentures

  5. Debentures Issue of Debentures Issue of Debentures for consideration other than cash 1 When the assets are purchased and debentures are issued 2 When a business is purchased and debenture are issued

  6. Debentures Issue of Debentures Issue of Debentures for consideration other than cash 1 When the assets are purchased and debentures are issued Any of the two entries will appear as per the case may be

  7. Debentures Issue of Debentures Issue of Debentures for consideration other than cash 2 When a business is purchased and debenture are issued Purchase consideration is equal to net value of the assets Purchase consideration is more than net value of the assets Purchase consideration is less than net value of the assets

  8. When a business is purchased and debenture are issued Purchase consideration is equal to net value of the assets Journal Entries

  9. Debentures Issue of Debentures When a business is purchased and debenture are issued Purchase consideration is more than the net value of the assets Journal Entries

  10. Debentures Issue of Debentures When a business is purchased and debenture are issued Purchase consideration is less than the net value of the assets Journal Entries

  11. Debentures Issue of Debentures Issue of Debentures as Collateral Security Debentures ` Debentures as Collateral Security

  12. Debentures Issue of Debentures Issue of Debentures as Collateral Security Method - 1 No entry is recorded at the time of issuing such debentures. Method - 2 Issue of debenture as collateral security recorded Illustration

  13. Debentures Issue of Debentures Issue of Debentures as Collateral Security Illustration Method - 1 Method - 2

  14. Debentures Issue of Debentures Issue of Debentures as Collateral Security Method - 1 Balance Sheet of ABC Ltd

  15. Debentures Issue of Debentures Issue of Debentures as Collateral Security Journal Method - 2 Balance Sheet of ABC Ltd

  16. Debentures Redemption of Debentures Redemption of Debentures means repayment of the amount of debentures to the debenture holders or discharge of the liability on account of the debenture. Raise Fresh Capital Utilise the profit Sources of Redemption of Debentures Sale of Assets Surplus Funds

  17. Debentures Issue of Debentures Methods of Redemption of Debentures On Maturity in lump-sum In installment by draw of lots By purchase in open market By Conversion

  18. Debentures Methods of Redemption of Debentures On Maturity in lump-sum Face value Market Price Face value Market Price At premium At Par

  19. Debentures Methods of Redemption of Debentures On Maturity in lump-sum At Par On Debentures becoming due for payment On Redemption

  20. Debentures Methods of Redemption of Debentures On Maturity in lump-sum At Premium On Debentures becoming due for payment On Redemption

  21. Debentures Methods of Redemption of Debentures By purchase in open market For immediate cancellation Keeping them as investment

  22. Debentures Methods of Redemption of Debentures By purchase in open market For immediate cancellation On purchase of Debentures On cancellation of own debentures Profit transferred to Capital Reserve

  23. Debentures Methods of Redemption of Debentures By purchase in open market For investment purpose On purchase of Debentures On cancellation of own debentures Profit transferred to Capital Reserve

  24. Debentures Methods of Redemption of Debentures Redemption by Conversion Amount due to Debentures holders Par Premium Discharge obligation by issue of Shares & Debentures Par Premium Discount

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