Hi, my name is Omar Parsa. I'm from India. I am a commerce student. Want to know what is debentures meaning in accounting? It is an instrument issued by companies, typically as a form of debt. The debenture holder is usually guaranteed a fixed rate of interest (unless the company defaults) and can receive additional money based on the company's performance. When used to finance expansion, these instruments are used by corporations to raise capital without having to borrow money financially or banks, which allows debenture holders equity in the company that issued it.