What are Debentures and Why Are They Issued?
Debentures are a type of corporate bond that is created by companies. The money borrowed to create debentures is called the face value. In exchange for the money, the company agrees to pay interest on debentures over a fixed period of time. Once the debenture matures, the company has to pay back the face value […]
What is Change in the Profit Sharing Ratio in Partnership Accounts?
A change in the profit-sharing ratio in partnership accounts refers to the alteration in the distribution of profits among the partners. This can occur for several reasons, such as: Any change in the profit-sharing ratio must be agreed upon by all of the partners and documented in a written agreement. Here is an example of […]