Select most appropriate alternative from those given below :The intere

1.	Select most appropriate alternative from those given below :The interest on debentures is transferred to __________.OptionsDebentures A/cProfit of Loss A/cBalance SheetDebenture holders A/c
Answer» The interest on debentures is transferred to Profit and Loss A/c. Explanation: Interest on debentures is an expense for a company. Debenture-holders are the creditors of the company and are paid a fixed rate of interest every year till redemption. Therefore, the interest expense is a charge against the profits and is debited to the Profit and Loss Account.

Select most appropriate alternative from those given below :The interest on debentures is transferred to __________.OptionsDebentures A/cProfit of Loss A/cBalance SheetDebenture holders A/c

Answer»

The interest on debentures is transferred to Profit and Loss A/c.

Explanation: Interest on debentures is an expense for a company. Debenture-holders are the creditors of the company and are paid a fixed rate of interest every year till redemption. Therefore, the interest expense is a charge against the profits and is debited to the Profit and Loss Account.

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Select most appropriate alternative from those given below :The interest on debentures is transferred to __________.OptionsDebentures A/cProfit of Loss A/cBalance SheetDebenture holders A/c

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