Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is a ‘Convertible Debenture&r

Welcome to the NCERT Solutions for Class 12th Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures. This page offers a step-by-step solution to the specific question from Exercise 1, Question 8: what is a lsquo convertible debenture rsquo....
Question 8

What is a ‘Convertible Debenture’?

Answer

Convertible debentures are the debentures that are capable of converting into shares at a future date. These are to be considered in calculating the diluted EPS and thereby increases the number of shares. hence the EPS reduces because of Convertible debentures.

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