Accounting For Issue of Debentures

Accounting for issue of debentures at Par, Premium, Discount, as collateral security, Writing off Discount/ Loss on issue, redemption & Interest on Debentures
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Debentures
It is a financial instrument, issued by Companies to raise Funds from the Market that acknowledges Payment of Interest on regular intervals and Repayment of Principle on maturity of the instrument to its holders.
It includes Debentures, Stock, Bonds or any other Instrument of a Company that evidences debt on it.
It can be redeemable (having maturity period) or Irredeemable (No maturity period.) (Explanation of Types of Debentures has been ignored intentionally.)
Disclosure of Debentures in Balance Sheet
Debenture is generally a long term Financial Instrument, a means of raising Long term Finance for the Company that falls under Non Current Liability Head in Balance Sheet.
An Extract of Balance Sheet
However, if it has been issued for a period of Less than 12 Months, then it falls under Short Term Borrowing under Current Liability Head of Balance Sheet.
Note:
In Case, Part of Long Term Debentures become due for redemption before maturity within 12 months from the date of Balance Sheet, it will be recorded in Other Current Liability under Current Liability Head as “Current Maturities of Long Term Debts”.
Issue of Debentures
Debentures can be issued for Cash or Consideration other than Cash.
Further, whether issued in Cash or For Consideration other than Cash, it can be issued at Par, Premium or Discount.