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Q. What is Debentures?
Debentures a debenture is an instrument issued by the company acknowledge its debts to its holders . it is also an important method of raising long terms and permanent working capital the debenture holders are the shareholder of the company fixed rate of interest is paid on the debenture the interest on the debenture is charged against on the profit and loss account . The debenture is given on the floating charge on the assets of the company. When the debenture are secured they are paid on the periodically to the other creditors. The debenture is the various type such as the simple, naked or unsecured debenture secured or the mortgaged debenture are redeemable debenture , convertible or non convertible debenture.
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