Question:
What is meant by issue of debentures for consideration other than cash?
What is meant by issue of debentures for consideration other than cash?
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Issuing debentures for consideration other than cash is a strategic way to acquire assets or settle liabilities while preserving liquidity.
Updated On: Nov 5, 2025
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Solution and Explanation
When a company issues debentures for consideration other than cash, it means the debentures are issued in exchange for acquiring assets or settling liabilities instead of receiving cash payment. For instance, a company may issue debentures to purchase machinery, land, or to settle creditors.
This method allows the company to procure resources or settle obligations without impacting its cash flow.
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