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Debentures is a kind of debt instrument used by businesses to raise money is debentures. A business effectively borrows money from investors or the general public when it issues debentures and holders of debentures are entitled to the principal amount as well as fixed interest payments at the time of maturity. Below are some key features of debentures: Debt Instrument: A firm may borrow money for a desired period of time by issuing debentures. Debentures are a type of debt where the company pledges to repay the principal amount plus interest, in contrast to equity, which symbolizes ownership in the company. Fixed Interest Payments:  D ebentures holders get fixed interest payments on a monthly, quarterly or annually basis. Debentures are different from several other forms of bonds in which interest rate is fixed. Maturity Date: Debentures have a maturity date, after which the company must pay the principal amount to the holders. The length of the maturity period depends on ...

Journal entries are the basic building blocks of financial record-keeping in the accounting domain. They offer an overview of each financial transaction a company does, guaranteeing precision and openness. In this blog, will discuss different types of journal entries with examples from the real world to help explain how businesses record their financial actions in an organized and consistent way.   1. Simple Cash Sale: Sold merchandise for cash. Debit Cash Credit Sales   2. Credit Sale: Sold goods on credit. Debit Accounts Receivable Credit Sales   3. Return of Goods Sold on Credit: Debit Sales Returns and Allowances Credit Accounts Receivable   4. Purchase of Goods on Credit: Bought goods on credit from a supplier. Debit Inventory Credit Accounts Payable   5. Purchase Return for Goods Bought on Credit: Debit Accounts Payable Credit Inventory   6. Cash Purchase: Bought equipment for cash. Debit Equipment Credit Cash   7. Write-down of Inventory Val...