Skip to main content
Super TutorResources
Chapter 8 of 10
QuestionsNotesFlashcardsSummaryFormulasQuizConceptsSyllabusPlan
Revision Notes

Joint Stock Accounts : Issue of Debentures

ICSE · Class 12 · Accountancy

Quick revision notes for Joint Stock Accounts : Issue of Debentures — ICSE Class 12 Accountancy. Key concepts, formulas, and definitions for last-minute revision.

45 questions37 flashcards5 concepts

Interactive on Super Tutor

Studying Joint Stock Accounts : Issue of Debentures? Get the full interactive chapter.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for revision notes and more.

Try Super Tutor — Free

1,000+ Class 12 students started this chapter today

An illustration showing a company issuing a debenture certificate to an investor, highlighting it as an acknowledgement of debt, with key terms like 'interest rate', 'repayment period', and 'company s
Super Tutor

Super Tutor has 9+ illustrations like this for Joint Stock Accounts : Issue of Debentures alone — flashcards, concept maps, and step-by-step visuals.

See them all

Key Topics to Revise

1

Meaning, Nature, and Basic Features

  • A debenture is an instrument issued by a company under its common seal, acknowledging debt and promising repayment of principal with interest.
  • Debentures are loan capital and not part of ownership capital.
  • Debentureholders are creditors of the company, not owners.
2

Types and Classification of Debentures

  • From transfer point of view: registered debentures and bearer debentures.
  • From security point of view: secured or mortgaged debentures and unsecured or simple or naked debentures.
  • From redemption point of view: redeemable debentures and irredeemable debentures.
3

Issue of Debentures: Price and Redemption Terms

  • Debentures may be issued at par, at premium, or at discount.
  • Debentures may be redeemable at par or at premium.
  • Debentures cannot be redeemed at discount under the company’s own redemption terms.
4

Journal Entries for Issue of Debentures for Cash

  • The accounting procedure for issue of debentures is similar to issue of shares, with Debenture Account replacing Share Capital Account.
  • Representative personal accounts used are Debenture Application Account, Debenture Allotment Account, and Debenture Call Account.
  • If excess application money exists and the question is silent, it is refunded and not carried forward to Calls-in-Advance Account.

Get complete notes with diagrams and examples

Full Notes

Key Concepts

A debenture is an instrument issuedA debentureholder is the personDebentures may be classified fromConvertible debentures can be converted intoDebentures may be issued at par

Frequently Asked Questions

What are the important topics in Joint Stock Accounts : Issue of Debentures for ICSE Class 12 Accountancy?
Key topics in Joint Stock Accounts : Issue of Debentures include Classification of Debentures - Comprehensive Overview, Complete Debenture Accounting Concept Map, Debentures: Comprehensive Classification. These are the concepts ICSE Class 12 examiners draw on most — study them first, then practise related questions.
How to score full marks in Joint Stock Accounts : Issue of Debentures — ICSE Class 12 Accountancy?
Understand the core concepts first, then work through the 45 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.

Sources & Official References

Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.

More resources for Joint Stock Accounts : Issue of Debentures

All 10 chapters — ICSE Class 12 Accountancy Revision Notes

For serious students

Get the full Joint Stock Accounts : Issue of Debentures chapter — for free.

Quizzes, flashcards, AI doubt-solver and a step-by-step study plan for ICSE Class 12 Accountancy.

Try Super Tutor Free
Try the full chapter — Free