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Questions based of issue of debenture as consideration other than cash 100% understanding,Debentures can be issued for non-cash considerations. The company may have purchased assets from some vendors or acquired some other business. Then instead of paying cash, the company may issue debentures to such vendors.

Questions based of issue of debenture as consideration other than cash 100% understanding , Debentures can be issued for non-cash considerations. The company may have purchased assets from some vendors or acquired some other business. Then instead of paying cash, the company may issue debentures to such vendors.

Section 52 of Indian companies act 2013,Issue of shares at the premium means the amount demanded by the company at the time of issue of shares is more than the face value of shares. It may serve as the security money or the goodwill money which is being demanded by the company.

They are a percentage of profits placed aside to bolster a company’s financial condition. Reserves are often established to address unforeseen future liabilities that may develop as a result of various business causes.The “provisions” refers to the amount set aside by charging to the Profit and Loss Account to cover any known obligation, the amount of which cannot be specified precisely.

A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.

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