Question

"Interest paid on debentures is a charge against the profits of the
company. Is this statement correct? Give reason in support of your
answer
​

Answer 1

Answer:

correct .

Debentures are financial instruments which carry a certain percentage of interest. So debentures are like other debts. Interest paid on them is charged against the profit and loss account.

Explanation:

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Answer 2

Yes, it is a correct statement that the interest paid on debentures is a charge against the profits of the company since debentures are some financial instruments which helps the business magnets to borrow or lend money to fulfill the business needs.

Explanation:

• Debentures are used as financial sources of the company either to borrow or lend money to meet the financial needs which includes the expansion of the business and the meeting the client satisfaction through the production of quality products.

To know more:

1) What is a debenture? What are different kinds of debentures?

https://brainly.in/question/6735082.

2) What is meant by Debentures.

https://brainly.in/question/2814057