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Question -

What is meant by ‘Issue of debentures for Consideration other than Cash’?



Answer -

A company purchases any asset from its vendors or suppliers and issues debentures to them instead of paying in cash. This process is known as issue of debenture for consideration other than cash. It helps both the seller and purchaser as the seller gets interest on debentures issued and the purchaser do not need to arrange cash immediately. Debentures are issued at par, premium or at a discounted rate to the seller.

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