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What is redemption of debenture ? Discuss the various methods of redemption of debenture.   Meaning-  The repayment of the amount of debentures to the debenture holders is referred to as redemption of debentures.  It denotes the principal amount as well as the interest due to debenture holders.  In other words, it refers to the discharge of debenture liability in accordance with the terms of issuance. Journal entries at the time of redemption of debentures:  Redemption of Debentures at Par  (a) Debentures A/C                                                                       Dr                      To Debentureholders’ A/C (Being debentures due for redemption)  (b) Debenturehold...

  Explain the main features and types of debentures.  Meaning-  If a company needs funds for expansion and development but does not want to increase its share capital, it can borrow from the general public by issuing certificates for a set period of time at a fixed rate of interest. A loan certificate of this type is known as a debenture. Debentures are issued to the public for subscription in the same way that equity shares are. A debenture is a document that acknowledges the receipt of money and is issued under the company's common seal. Features of Debentures- 1. Debenture holders are the company's creditors who pay a fixed rate of interest. 2. A debenture must be redeemed after a set period of time. 3. Debentures are classified as either secured or unsecured. 4. The interest on a debenture is a charge against profit and thus a tax deductible expense. 5. Debenture holders have no voting rights. 6. Even if there is a loss, interest on a debentur...