‘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. 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 PostWhy is premium on the issue of debentures considered a capital profit? Next PostPass the necessary journal entry when 10,000 debentures of Rs. 100 each are issued as collateral security against a Bank Loan of Rs. 8,00,000. You Might Also Like C and D are partners in a firm; C has contributed Rs. 1,00,000 and D Rs. 60,000 as capital. Interest in payable @ 6% p.a. and D is entitled to a salary of Rs. 3,000 per month. In the year ended 31st March, 2019, the profit was Rs. 80,000 before interest and salary. Divide the amount between C and D. July 21, 2022 The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of Rs. 5,00,000. The drawings of the partners during the year 2021-22 were:(i) Tisha withdrew 25,000 at the end of each quarter.(ii) Divya’s drawings were: October 11, 2022 What is meant by ‘Hidden Goodwill’? (AI 2017 C) October 8, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
C and D are partners in a firm; C has contributed Rs. 1,00,000 and D Rs. 60,000 as capital. Interest in payable @ 6% p.a. and D is entitled to a salary of Rs. 3,000 per month. In the year ended 31st March, 2019, the profit was Rs. 80,000 before interest and salary. Divide the amount between C and D. July 21, 2022
The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of Rs. 5,00,000. The drawings of the partners during the year 2021-22 were:(i) Tisha withdrew 25,000 at the end of each quarter.(ii) Divya’s drawings were: October 11, 2022
