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Liabilities. Debenture bonds are liabilities of the company because they represent debts that will have to be repaid in the future.Because debenture bonds fall into this category, they are placed on the balance sheet in the long-term liabilities section.

Debenture Interest for the year (paid or outstanding) is an expense for the business and is shown in the Income Statement. Any Debenture Interest that is outstanding is also shown under Current Liability in the Balance Sheet.

A debenture is a type of debt instrument that is not backed by any collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.

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

What is a Debenture? 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.

Debenture means acknowledgment of debt. Debenture is a borrowed capital.

A debenture is a bond issued with no collateral.Both corporations and governments make use of debentures. Examples of debentures are Treasury bonds and Treasury bills.