Question

Write short note on conditions for issue of debentures.

Answer 1

The issue of Debentures is very similar to the issue of shares by a company. Here to the money can be collected lump sum or in installments. The accounting treatment of the two is also quite similar. Now debentures can be issued for cash or some other consideration. At times issue of debentures is also done as a collateral security. Let us study in detail the issue of debentures.

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