Debentures

Registered debentures:
Those debentures which are registered in the name of the holders in the books of the company, and transfers of these must be registered in the books of the company.
Bearer debentures:
These are payable to bearer. They are negotiable instruments and are transferred by mere delivery. Mortgage debentures:
Those debentures which are secured by a fixed or floating charge on the assets of the company. Debenture stock:
Debenture stock is one or more series of debentures consolidated, each stock-holder being entitled to such proportion of the whole amount as i.e., represented by his stock certificates.
CHAPTER # 5
Depreciation:
Depreciation is the gradual decrease in the efficiency of an asset expressed in monetary terms because of its usage and wear and tear.
OR
Depreciation may be defined as the permanent and continuous diminution in the quality, quantity or value of an asset
Internal depreciation:
Depreciation which occurs for certain inherent normal causes, is known as internal depreciation. Such as wear and tear and depletion.
External depreciation:
Depreciation caused by some external reasons is called external depreciation. Such as obsolescence, efflux of time and accident.
Wear and tear:
The change in the shape of an asset due to use in business is known as wear and tear.
Depletion:
The decrease in the value proportionate to the quantum of production e.g. mines, quarries, oil wells, forests etc.
OR
Decrease in the value of wasting assets is called depletion. Obsolescence:
The decrease in the value of an asset due to new inventions, change in habit and taste of people, improvements is known as obsolescence.
Fluctuation:
The decrease or increase in the market value of an asset not due to use in business is known as fluctuation.
Cost price of an asset:
It includes all expenses involved in carrying and installing the asset to the site.