2.3.2 - Types of Debentures
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Practice Questions
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Define debenture.
💡 Hint: Think about what a company uses to borrow money.
What is a secured debenture?
💡 Hint: What gives an investor a safety net?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is a debenture?
💡 Hint: Focus on what a company uses to secure funds.
Convertible debentures can be converted into what?
💡 Hint: Think about how investors might benefit later.
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Challenge Problems
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A company issued 50,000 non-convertible debentures at a face value of ₹100 each at a 10% premium. How much total money did the company raise?
💡 Hint: Calculate the total by considering each debenture's issue price.
When redeeming a ₹1,00,000 debenture which pays 5% interest at a premium of 5%, outline the journal entries needed for the redemption.
💡 Hint: Remember to reflect the premium in your entries.
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