1.

Interest on debenture for half year is to be provided

Answer»

We calculate Interest on debentures at a fixed rate on its nominal (FACE) value payable quarterly, HALF yearly or yearly as per the terms of issue. The rate of interest is a prefix value to the DEBENTURE, say 9% Debentures and, therefore, is payable EVEN if the COMPANY incurs a loss. It is a charge against profit.



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