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February 20, 2009

What is a debenture?

A debenture is an unsecured bond. In other words, a debenture is a bond without a lien on specific assets owned by the issuing corporation.

Learn more about Bonds Payable.

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About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.



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Comments

10 Responses to “What is a debenture?”

  1. usman on February 25th, 2009 1:51 am

    Debenture is long term unsecured debt instrument issued only by the corporations with the High Rate of Interest.

    and it is called unsecured because the governament does not issue debenture unlike of Bonds.

  2. Von on February 25th, 2009 12:08 pm

    I don’t think this is an accurate definition. I dont think all debentures are bonds. Also, there are debentures that are secured.

  3. bhagu on March 4th, 2009 5:09 am

    thanku
    sir
    for sending ans

  4. Steve on March 5th, 2009 3:51 am

    Debentures are long term loans given to an entity in regard to their credit worthness.They are always unsecured and earns a fixed rate of interest.

  5. arijit on March 7th, 2009 4:53 am

    debenture are sources of loan capital through whicha company increases his capital by selling it to the holders

  6. sunday on March 16th, 2009 4:35 am

    A debenture is a claim, charge,or lien on asset or property pledged as a collateral for a loan.

  7. celest on August 31st, 2009 12:04 pm

    a debenture is a written acknowledgement of loan, given to a company with a fixed rate of interest which is payable wherether the company make profit or not.

  8. The great on September 15th, 2009 9:07 am

    A debenture is a debt instrument that can be identified as a loan, on which a company or government issues to secure its capital.

  9. Splix on September 16th, 2009 9:22 am

    What is the double entry for debentures? I’ve just done a manufacturing account question for my AS level and it said ‘10% debenture 1999-2009 £50000′. What do I do with it? Thanks.

  10. mimi on January 16th, 2010 2:20 am

    the great on 14 jan 2010 sat

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