Why is premium on the issue of debentures considered a capital profit? Post category:Accountancy Reading time:1 mins read SOLUTION It is considered as a capital profit because it is not an income arising from the normal course of business operations. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostMention two differences between ‘Premium on Issue of Debentures’ and ‘Premium on Redemption of Debentures’. Next Post‘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) You Might Also Like What is a Comparative Balance Sheet? October 1, 2022 From the following details, calculate Inventory Turnover Ratio: August 13, 2022 Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of Rs. 5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of Rs. 2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of Rs. 10,000 for the year ended 31st March, 2022. Determine the amount to be transferred to Profit and Loss Appropriation Account. September 16, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Nirmal and Pawan are partners sharing profits in the ratio of 3: 2. The firm had given loan to Pawan of Rs. 5,00,000 on 1st April, 2021. Interest was to be charged @ 10% p.a. The firm took loan of Rs. 2,00,000 from Nirmal on 1st October, 2021. Before giving effect to the above, the firm incurred a loss of Rs. 10,000 for the year ended 31st March, 2022. Determine the amount to be transferred to Profit and Loss Appropriation Account. September 16, 2022