CA CPT WhatsApp Now @+91 8692900017

Equity vs Debentures

Equity Shares :

  1. Owners
  2. Have voting rights and control
  3. No fixed dividend rate
  4. Dividend is an appropriation of profits
  5. Non convertible
  6. Shares are a part of Shareholders' funds in Balance Sheet
  7. Only on liquidation
  8. Maybe forfeited
  9. Paid after all other liabilities settled

 

Debentures:

  1. Lenders
  2. No voting rights and control
  3. Fixed interest rate
  4. Interest is a charge against profits
  5. Convertible
  6. Debentures are a part of Long Term Borrowings
  7. Are redeemable
  8. Cannot be forfeited
  9. Paid first on liquidation

Equity vs. debentures from meraskill
View Full course at https://www.meraskill.com/ca-cpt/accounts/redemption-of-preference-share-and-issue-of-debenture

Subscribe to Our Channel & Page