Issue and Redemption of Debentures: Meaning, Accounting and Examples

The compilation of these Accountancy Notes makes students exam preparation simpler and organised.

Issue and Redemption of Debentures

The word ‘debenture’ translates to a written instrument as debt. When a company wishes to raise capital but does not want to dilute its equity they issue debentures. Let us see the types of debentures issued, terms of issue, the redemption of debentures, and the accounting treatment for the same. Let’s begin!