distinguish features of different method of redemption of debenture
Answers
Differences on the methods of redemption of debentures are:
Lump Sum Method
One time payment and the amount is settled whole.
Accounting Treatment
Entries for this debentures are passed in ledgers.
Installment Method
In this method a company starts redeeming debentures in lots or installments.
Conversion Method
In this, the Company may redeem the debentures or may convert the debentures into new ones or equity shares.
Purchasing Method
In this, the company will buy its debentures from the open market and then immediately cancel them
"Redemption of debentures implies installment of the measure of debentures by the organization. At the point when debentures are reclaimed, obligation because of debentures is released. Measure of assets required for recovery of debentures is very huge and, in this manner, reasonable organizations make adequate arrangement out of benefits and collect assets to reclaim debentures.
PREMIUM ON REDEMPTION OF DEBENTURES:
The premium on reclamation of debenture infers that the organization is paying more than it got at the issue of the debenture to the “debenture holder” at the season of recovery."