1. CPTSuccess Revision Notes – Fundamentals of Accounting Chapter 9. Company Accounts Unit 4: Issue of Debentures

3. On basis of Security – Secured or Unsecured

4. On basis of Convertibility– Convertible or Non-convertible

5. On basis of Permanence – Redeemable or Irredeemable

6. On basis of Negotiability– Registered or Non-registered

7. On basis of Priority– First mortgage or Second mortgage© Revision Notes - Fundamentals of Accounting CPTSuccess www.cptsuccess.com

9. Debenture holders are treated as creditors of the company. They do not get any dividend or ownership interest in the company.

10. Loss on issue of debentures is written over the period of redemption because of revenue matching concept.© Revision Notes - Fundamentals of Accounting CPTSuccess www.cptsuccess.com

12. The amount of loss on issue of debentures not written off is shown under head “miscellaneous expenditure” on the asset side of the balance sheet. © Revision Notes - Fundamentals of Accounting CPTSuccess www.cptsuccess.com

13. CPTSuccess