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Interest payable on debentures is ______. - Accounts

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Question

Interest payable on debentures is ______.

Options

  • an appropriation of profits of the company.

  • a charge against profits of the company.

  • transferred to sinking fund investment account.

  • transferred to general reserve.

MCQ
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Solution

Interest payable on debentures is a charge against profits of the company.

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Chapter 7: Company Accounts - Issue of Debentures - OBJECTIVE TYPE QUESTIONS [Page 7.66]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 7 Company Accounts - Issue of Debentures
OBJECTIVE TYPE QUESTIONS | Q A. 4. | Page 7.66
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