After studying this chapter you should be able to:
Understand the meaning and basic characteristics of a debenture.
Distinguish Shares from debentures.
Know the meaning and functions of debenture trustee.
Explain what a charge really means.
Understand the various ways of issue of debentures—for cash, other than cash, as a collateral security.
Appraise the various categories of issues of debentures and redemption.
Know the accounting treatment for each such category.
Understand the methods of redemption— Provisions of Section 117C.
Explain the term: Debenture redemption reserve and know how to create DRR.
Understand redemption out of capital and its accounting treatment. ...