The financial year of CD Limited ends on 30 April. The following information was provided on 30 April 2018.
$ $
Non-current assets (book value) 227 000 Ordinary share capital
Inventory 29 000 (300 000 shares of $0.50) 150 000
Trade receivables 22 000 General reserve 1 May 2017 30 000
Bank 11 000 Retained earnings 1 May 2017 6 000
Profit for the year ended
30 April 2018 13 000
5% Debentures (repayable 2025) 50 000
Trade and other payables 40 000
REQUIRED
State two differences between debentures and ordinary shares.
1
2