Question

What is the nature of interest on debentures?

​

Answer 1

Explanation:

Interest on debentures is usually payable half-yearly. Interest on debentures is payable even the company suffers a loss or does not earn profit. Interest on debentures is a charge against profits and, therefore, its payment is not subject to the earning of profits.

Answer 2

Answer:

Debenture Interest for the year (paid or outstanding) is an expense for the business and is shown in the Income Statement. Any Debenture Interest that is outstanding is also shown under Current Liability in the Balance Sheet. Any Accrued Debenture Interest is also shown under Current Assets in the Balance Sheet.

Explanation:

hope it helps u...............