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Redemption of debentures

Accountancy

Why we treat own debentures as investment? And explain the concept of own debentures

Kanaga Mani

CA Inter

★ 3K+

04-Jun-20 13:21

337

Answers (1)

'Own Debentures Account', is opened in the books when a company buys its own debentures for investment purposes and not for cancellation. Company can buy its own debentures before redemption and show it as an investment at the purchase value and cancels it at the time of redemption. Also, Companies act permits buy back of securities if articles permits