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what is difference between share and debenture ?
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what is difference between share and debenture ? Related: Difference ...
Share is owners’ capital - Debenture is borrowed capital
Dividend is paid to the share holder - Interest is payable debenture subscribers
Dividend is paid only if the company has profits - Interest is payable no matter whether the company is in profits or losses.
Dividend is the second priority while making the payment - while interest is the first priority.
Dividend is paid after arriving at the net profit (ie. Profit after Interest, Depreciation and Tax) - Interest is paid before arriving at the net profit status (in other words, interest is one of the element in Profit and Loss Account while Dividend does not figure in P & L A/c, it appears only in P&L Appropriation A/c).
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