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COMPANY ACCOUNTING SESSION 14
1.8 LOAN CAPITAL (DEBENTURES)
The most common form of long-term loan taken by a company is called a debenture. It is usually a loan
repayable at a fixed date, although some debentures are irredeemable securities; theses are sometimes
called perpetual debentures. Most debentures also pay a fixed rate of interest, and the interest must be
paid before a dividend is paid to shareholders.
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