Understanding the Procedure and Accounting Entries for Issuing Debentures

The video tutorial explains debentures, their features, and types. It covers the issuance process, including issuing at par, premium, and discount, and the accounting entries involved. The tutorial also discusses issuing debentures for non-cash consideration and as collateral security. The session concludes with a brief overview of the accounting implications of these transactions.

What are debentures and what are their key features?

Describe the procedure for issuing debentures.

What are the different forms in which debentures can be issued?

Explain the accounting entries involved when debentures are issued for cash at par.

What is the significance of issuing debentures at a premium or discount?

How does the accounting entry change when debentures are issued at a discount?

What does it mean when debentures are issued for consideration other than cash?

Define collateral security in the context of debentures.

What are the journal entries for issuing debentures as collateral security?

Discuss the implications of issuing debentures when the period has not been decided.