class 12 accountancy issue of debenture and financial analysis notes
Issue of Debenture and financial analysis . ... Short & Easy Notes for B oard Exam #1. What do you mean by debenture? what are its characteristics? => Debenture is a document issued by the company to obtain loan from the public or private institutions. Following are its characteristics; 1. It is a return instrument. 2. It is a loan document issued by the company. 3. It has a fixed rate of return. 4. It may be secured or unsecured. 5. It does not carry voting right. #2. Difference between share and debenture. => Share; 1. It represent a portion of capital. 2. It has voting right. 3. Dividend is paid on share. 4. Dividend is made only when there is profit. 5. Shareholder are the owner of the company. 6. It cannot be redeemed. Debenture; 1. It represent debt of the company. 2. It does not have voting right. 3. Interest is paid on debenture. 4. Interest is compulsory, weather the company earn profit or not. 5. Debenture-holder are the creditor of the company. 6. ...