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Explain Any Four Types of Debentures Through Which a Public Limited Company Can Collect Its Borrowed Capital from the Public.

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प्रश्न

Explain any four types of debentures through which a public limited company can collect its borrowed capital from the public.

संक्षेप में उत्तर
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उत्तर

Redeemable Debentures: Redeemable debentures carry a specific date of redemption on the certificate. The company is legally bound to repay the principal amount to the debenture holders on that date.

Irredeemable (Perpetual) Debentures:
On the other hand, irredeemable debentures, also known as perpetual debentures, do not carry any date of redemption. This means that there is no specific time of redemption of these debentures. They are redeemed either on the liquidation of the company or when the company chooses to pay them off to reduce their liability’ by issues a due notice to the debenture holders beforehand.

Convertible Debentures: Convertible debenture holders have the option of converting their holdings into equity’ shares. The rate of conversion and the period after which the conversion will take effect are declared in the terms and conditions of the agreement of debentures at the time of issue.

Non-Convertible Debentures: Non-convertible debentures are simple debentures with no such option of getting converted into equity. Their state will always remain of debt and will not become equity’ at any point of time.

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अध्याय 3: Sources of Financial for a Join stock Company - EXERCISES [पृष्ठ ७८]

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सी. बी. गुप्ता Commerce Volume 2 [English] Class 12 ISC
अध्याय 3 Sources of Financial for a Join stock Company
EXERCISES | Q II. 35. | पृष्ठ ७८

संबंधित प्रश्न

Answer in a sentence only.
What is meant by redemption of Debentures?


Write one word/term/phrase which can substitute the following
The debentures of which payment is made on the expiry of specific period.


Select most appropriate alternative from those given below ____________debentures which are recorded in register of company.


Select most appropriate alternative from those given below :
The debentures which are converted into shares is called____________.


State to whether the following statement is True/False.
The amount of irredeemable debentures is not paid in the life time of the company.


State to whether the following statement is True/False.
The unregistered debentures are known as naked debentures.


State to whether the following statement is True/False.
Unsecured debentures are safer than secured debentures.


Give the word / term or phrase which can substitute the following statement.

The debentures which are converted into shares.


Mahakali Co. Ltd. Chandrapur issued 1,000, 12% debentures of  Rs.100 each, payable Rs. 20 on application and the balance on allotment. Applications were received for 1,500 debentures, out of which, applications for 900 were allotted fully, applications for 400 were allotted 100 debentures and remaining were rejected. All dues received.
Journalise the transactions and also show Balance Sheet.

Match the items given in Column I with the headings/subheadings (Balance sheet) as defined in Schedule III of Companies Act 2013.

  Column I   Column II
(I) Loose Tools (a) Intangible fixed assets
(II) Patents (b) Other current assets
(III) Prepaid insurance (c) Long term Borrowings
(IV) Debentures (d) Inventories
(V) Machinery (e) Tangible Fixed assets/Property, Plant and Equipment

Choose the correct option:


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