Redemption Of Debentures || Class 12 || Part 1 || Accounts || Commerce के काका

Debenture redemption refers to the process of repaying or redeeming the principal amount (the face value) of a company's debentures when they mature. Debentures are a type of debt instrument, usually issued by companies to raise capital. They are essentially loans that the company promises to repay on a specified maturity date, typically with interest payments during the life of the debenture. The redemption process can occur in different ways: At Maturity: When the debenture matures, the company repays the full principal amount (the face value) to the debenture holders. Early Redemption: The company may choose to redeem the debentures before the maturity date, typically if the terms allow it. This could be part of a strategy to reduce debt or take advantage of favorable market conditions. Sinking Fund Method: The company might set aside a certain amount of money regularly (in a "sinking fund") to redeem the debentures gradually over time rather than all at once. Call Option: Some debentures come with a "call option," meaning the company can redeem the debentures before the maturity date, often at a premium over the face value. The main goal of debenture redemption is to honor the debt commitments and ensure the company’s creditworthiness and trust with its investors. Debenture Redemption Debenture Explained Corporate Finance Debt Instruments Redemption of Debentures Company Debt Sinking Fund Call Option on Debentures Maturity of Debentures Early Redemption Finance Basics Debenture Payment Corporate Bonds Debt Management Financial Terminology Business Finance Investing in Debentures Debenture Repayment Process Types of Debentures Finance for Beginners #accounting #education #importantquestion #isc #study #class12th #cafoundation #icai