ICSE Class 10 Commerce 2019 Solved Papers
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Distinguish between :
SECTION - I
Distinguish between :
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Question : 5
Total: 31
Share and Debentures
Solution:
Distinguish between shares and Debentures :
| Share | Debentures |
|---|---|
| (i) Shareholders are owners of a company. It is an ownership security and it forms part of the company's owned capital. | Debentureholders are its creditors. It is a creditorship security and it forms part of the company's borrowings. |
| (ii) Dividend paid to the shareholders when there are profits. They are irregular and uncertain. | Interest paid to the debenture holders irrespective of pro-fits.The rate of interest on debe-nture is fixed and regular. |
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