Pankaj Arora (Learner) (3134 Points)
22 September 2011Dear All
Xyz Ltd. Company want to issue debenture 10000 each of Rs.1000 @ 10%. Please let me know that how to decide that company can not issue more than limit like issued capital can not be exceed than authorised capital.. And also let me know the all necessary journal entry related to issue of debentures.
Pankaj Arora
(Learner)
(3134 Points)
Replied 01 October 2011
pls. richa ma'm pls reply on this queyr...
RG - A Helping Hand
(Company Secretary)
(13867 Points)
Replied 01 October 2011
Hi,
As per my opinion issue of Debenture has nothing to do with authorised capital and paid up capital. Issue of debenture is somewhere connected to loan capital.
For issue of debenture you have to call a board meeting to fix up the interest rate and other terms and conditions.
Further board is also auth to allot debenture by passing a board resolution for allotment.
Also maintain register of debenture holders.
RG
Pankaj Arora
(Learner)
(3134 Points)
Replied 01 October 2011
Can pvt. Ltd. Co. issue debenture or convert directors loan into debenture?
CAclubindia
