‘Interest paid on debentures is a charge against the profits of the company’. Is this statement correct? Give reason in support of your answer. (C.B.S.E. 2020, Kolkata, Lucknow) – Swamonk EduCare

‘Interest paid on debentures is a charge against the profits of the company’. Is this statement correct? Give reason in support of your answer. (C.B.S.E. 2020, Kolkata, Lucknow)

Post category:Accountancy
Reading time:1 mins read

SOLUTION

Yes:
Reason: Interest on debentures has to be paid whether the Company earns profit or incurs loss.

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