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What is meant by Redemption of Debentures?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

Redemption of debentures means repayment of the amount of debentures to debentureholders. In other words, redemption refers to discharge of Liability on account of debentures by repaying the due amount of debentures.



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Previous PostGlobe Ltd. issues 20,000, 9% debentures of Rs. 100 each at a discount of 5% redeemable at the end of 5 years at a premium of 6%. For what amount ‘Loss on Issue of Debentures Account’ will be debited?
Next PostName two sources of finance for redemption of debenture.

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