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Debentures are a feature of secured lending, where assets are put up as collateral. This gives lenders the security of knowing they'll be able to recover the money they're owed if the business can't repay the loan. The term debenture essentially refers to the document itself, which is filed with Companies House.

Long-term liabilities are listed in the balance sheet after more current liabilities, in a section that may include debentures, loans, deferred tax liabilities, and pension obligations.

A debenture is a bond issued with no collateral. Instead, investors rely upon the general creditworthiness and reputation of the issuing entity to obtain a return of their investment plus interest income.Examples of debentures are Treasury bonds and Treasury bills.

A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds.

Because debenture bonds fall into this category, they are placed on the balance sheet in the long-term liabilities section.

When debentures are issued at premium, the amount of premium is credited to Debenture Premium Account. Debenture Premium Account is a capital profit and is transferred to Capital Reserve Account. When debentures are issued at discount, the amount of discount is debited to 'Discount on Issue of Debentures Account.

Debentures in the USA Rather than an instrument that's used to secure a loan against company assets, a debenture in the USA is an unsecured corporate bond that companies can issue as a means of raising capital.