Saved Bookmarks
| 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. |
|