What is debenture? , whether capital is an asset or liablity?

Question

Accepted Answer

A debenture is a type of debt instrument that is issued by a company or government entity to raise capital.

Debentures are typically long-term investments with a fixed interest rate and maturity date.
They are unsecured, meaning they are not backed by any specific collateral.
Debenture holders are considered creditors of the company and have a claim on its assets in case of default.
Capital is considered a liability as it represents the funds that a company owes to its shareholders or investors.
It is recorded on the liabilities side of the balance sheet.
Examples of debentures include corporate bonds, government bonds, and convertible debentures.

Accepted Answer

Debenture is liablity

Accepted Answer

Debenture is a source of share capital where the company borrow capital by giving certain agreed proportion of profits to the debentures.

Capital is an asset.

Accepted Answer

debenture is a debt instrument in the business which is unsecured by collateral.

capital is a liability why because it is an investment kept by the owner and owner is treated as liability

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