What is meant by 'Issue' of debentures for consideration other than cash? (Answer in one sentence)
Answers
A company purchases a running business (assets and liabilities) and issues to vendor, debentures as consideration. It is called issue of debentures in consideration, other than cash.
Answer:
As per the question
Issue' of debentures for consideration other than cash
A company can issue debentures for purchase of an assets or for purchase of business
A debenture is an instrument issued by a company under its common seal as acknowledgement of debt. It contains a contract for repayment of the principal amount on or before a specified date and for payment of interest ata fixed rate until the principal sum is rapid
Debentures can be issued for non-cash considerations. The company may have purchased assets from some vendors or acquired some other business. .Such an issue for debentures can be at par, or for a discount or at a premium.