Accountancy, asked by amanhusain2001, 1 year ago

what do you mean by debentures? when debentures be issued?​

Answers

Answered by karishmarajak
0

Explanation:

debentures are important instrument for raising long term debit capital . A company can raise funds through issue of debentures which bear a fix rate of interest .

The debentures are issued by company is an acknowledgement that the company has borrowed a certain amount of money which it promise to repay at future date

Answered by uditdas655
0

Answer:

Debenture are funds or borrowing from the public to contribute to the capital of the business. It is an instrument of acknowledgement of debt that a company has taken debt from the debentureholder and it will be repayed at a given period of time.

Debentures are to be issued when a company has enough creditworthiness and its financial position is not weak.

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