Issue of Debentures One Shot | Full Revision | CMA Inter Group 2 Corporate Accounting

Issue of Debentures One Shot Revision for CMA Inter Group 2 — Paper 10 Corporate Accounting. This video covers ALL concepts of Issue of Debentures from scratch — all 6 issue/redemption combinations, journal entries, amortisation of loss, interest on debentures, and debentures issued as collateral security — along with important solved questions, so you can revise the entire chapter in one sitting before your exam. 📚 What you'll learn in this One Shot: ✔ Meaning of Debenture and difference between Interest (charge against profit) and Dividend (appropriation of profit) ✔ All 6 Issue & Redemption combinations — At Par, At Premium, At Discount, Redeemable at Par/Premium ✔ Journal entries for each combination with the "Loss on Issue of Debenture" and "Premium on Redemption" logic ✔ Debentures issued for consideration other than cash ✔ Amortisation of Loss/Discount on Issue of Debentures — Lumpsum (SLM), Equal Annual Installment (Sum of Years' Digits), Unequal Annual Installment (Debenture Utilised ratio) methods ✔ Interest on Debentures — journal entries including TDS treatment ✔ Debentures Issued as Collateral Security — Journal Entry Method vs Disclosure Method ✔ Important & exam-oriented questions with step-by-step solutions ✔ Common mistakes students make in this chapter and how to avoid them 👨‍🏫 Taught by: Abhimanyyu Agarrwal 📖 Course: CMA Intermediate Group 2 📄 Paper: Paper 10 – Corporate Accounting 🙋 Frequently Asked Questions: Q1. What is the difference between interest on debenture and dividend on shares? A. Interest on debentures is a charge against profit, meaning it must be paid whether the company earns a profit or incurs a loss, whereas dividend on shares is an appropriation of profit and is paid only when the company earns profit. Q2. Can debentures be issued at a discount? A. Yes, unlike equity shares, debentures can legally be issued at a discount, since a debenture is a form of borrowing rather than ownership capital. Q3. What is Premium on Redemption of Debentures? A. When a company agrees to repay more than the face value of a debenture at the time of redemption, the excess amount is called Premium on Redemption of Debentures, and following the prudence concept, it is provided for at the time of issue itself. Q4. How is loss on issue of debentures written off? A. The loss on issue of debentures (discount plus premium on redemption) is amortised depending on the redemption method: the Straight Line Method for lumpsum redemption, the Sum of Years' Digits Method for equal annual installments, and the Debenture Utilised (ratio) Method for unequal annual installments. Q5. What does "debentures issued as collateral security" mean? A. It means debentures are pledged as additional security for a loan rather than being actually issued for cash, and can be accounted for either through the Journal Entry Method or the Disclosure Method, with only a disclosure required in Notes to Accounts under the latter. Q6. Is Issue of Debentures an important chapter for CMA Inter Group 2? A. Yes, this chapter is regularly tested in CMA Inter Paper 10 Corporate Accounting, especially the different issue-redemption case combinations and amortisation of loss questions. ⏱ Timestamps: 0:00 Introduction — What is a Debenture? Interest vs Dividend 1:00 Case 1: Issued at Par, Redeemable at Par 1:29 Case 2: Issued at Premium, Redeemable at Par 1:56 Case 3: Issued at Discount, Redeemable at Par 2:58 Case 4: Issued at Par, Redeemable at Premium 4:15 Case 5: Issued at Premium, Redeemable at Premium 5:06 Case 6: Issued at Discount, Redeemable at Premium 6:16 Sum 1: A Ltd — Debentures Issued at Discount 9:19 Sum 2: C Ltd — Issued at Par, Redeemable at Premium 11:59 Issue in Installments — Application & Allotment Entries 13:28 Sum 3: Agrotech Ltd — Discount Issue + Premium Redemption (Full Journal) 19:49 Debentures Issued for Consideration Other than Cash 23:00 Amortisation of Loss on Issue of Debentures — 3 Methods 25:34 Equal Annual Installment — Sum of Years' Digits Method 26:29 Unequal Annual Installment — Debenture Utilised Method 28:07 Interest on Debentures — Journal Entries with TDS 30:14 Debentures Issued as Collateral Security 33:31 Closing & Recap 🔔 Subscribe for more One Shot Revisions of CMA Inter Group 1 & Group 2 — Financial Accounting, Corporate Accounting & more, only on this channel! 📲 Follow for updates: 📞 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩: / 🌐 𝐕𝐢𝐬𝐢𝐭: ‎🌐 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐂𝐡𝐚𝐧𝐧𝐞𝐥: 🌐 𝐓𝐞𝐥𝐞𝐠𝐫𝐚𝐦: 🌐 𝐈𝐧𝐬𝐭𝐚𝐠𝐫𝐚𝐦: 🎁 EXCLUSIVE GIFT FOR YOU: Stop making messy notes! Download my premium, exam-ready Handwritten Notes for this chapter completely FREE here: #CMAInter #IssueOfDebentures #CorporateAccounting