1
Q
what are debentures?
A
Fixed term loans @ predetermined interest rate that company receives from debenture holders
2
Q
Issuer?
A
Has an obligation. Therefore, Dr Bank Cr Liability because: Pay interest @ coupon% (obligation) Pay capital @ maturity date (obligation)
3
Q
Holder:
A
Acquires debentures. Therefore, Dr Fin Asset Cr Bank Because: Receives interest @ coupon% Receives capital @ maturity date
